The Tokyo stock market is bracing for a slew of corporate results over the coming week, with the potential for a boost to sentiment if firms give upbeat earnings forecasts, analysts said Friday.
They said that a slew of domestic data as well as the performance of the US and Chinese stock markets would also influence Japanese shares ahead of a clutch of public holidays the following week.
Over the week to April 20, the Tokyo Stock Exchange's benchmark Nikkei-225 index rose by 88.67 points or 0.51 percent to 17,452.62, after a 0.69 drop the previous week.
The broader Topix index of all first-section companies increased 4.57 points or 0.27 percent to 1,710.07, after a loss of 0.67 percent the previous week.
Next week large Japanese corporations including Canon, KDDI, Honda, Sharp, Fujitsu, Toshiba, Nissan and NTT DoCoMo will publish their annual financial results.
"Even though some investors may be cautious ahead of the Golden Week holidays, they are definitely seeking the right time to buy, not to sell, stocks," he said.
Japanese financial markets will be closed for three out of the five usual trading days during this year's Golden Week holidays, which start on April 28.
The Tokyo market will also continue to track the performance of the yen as well the fortunes of the US and Chinese stock markets next week, amid concerns about China's breakneck economic growth, dealers said.
"Investors are still wary of the outlook for the US economy, but appear to have recovered from a huge shock they experienced in February when stock prices fell simultaneously all over the world," said Hideo Mizutani, chief strategist at Sieg Securities.
Both analysts said the Nikkei-225 will hover between 17,300 and 17,700 points over the coming week.
Investors will be closely watching domestic data such as industrial output, consumer prices and unemployment, as well as the Bank of Japan's economic outlook report and interest rate decision, all due on Friday, analysts said.
Comments
Comments are closed.