Japanese Stock Buyers Stay on the Sidelines

  • Chart-watchers see rebound signals but still urge caution
  • Short-selling ratio climbs while valuations get cheaper

Women wearing kimonos perform during a ceremony marking the first trading day of the year at the Tokyo Stock Exchange. Japan’s equities have been hit hard in the global selloff as investors take flight from risky assets amid concern about China’s market turmoil and the rout in oil.

Photographer: Tomohiro Ohsumi/Bloomberg

After the worst start to a year on record, Japanese stocks are approaching levels that in the past have proved to be springboards to recoveries.

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