Japanese shares are expected to stay under pressure, as investors remain cautious about the outlook for global markets, dealers said Friday.
"Nervous trade is likely to continue for the immediate future in Japan and the United States as investors want to see the scale of deterioration of the real economy and the developments over the US government's possible aid for Big Three car companies," said Tsuyoshi Nomaguchi, strategist at Daiwa Securities.
US politicians have ordered chiefs of Chrysler, Ford and General Motors to come up with a restructuring plan before US Congress decides whether to provide billions of dollars in a bailout in December.
A possible slow start to the US holiday shopping season, which will kick off after the Thanksgiving Day holiday on Thursday, could also depress global stocks, Nomaguchi said. In the coming week, investors will see a barrage of key US data, including consumer confidence, housing sales, durable goods, and jobs data.
In Japan, the government will announce new unemployment figures, inflation data, production and consumption data. The Tokyo market will be closed on Monday for a national holiday, before the US market takes a break Thursday for the holiday.
Over the week to November 14, the benchmark Nikkei-225 index fell 551.6 points, or 6.52 percent, to 7,910.79. The Topix index of all first section shares dropped 44.22 points, or 5.22 percent, to 802.69.
Nomura Securities said in a memo to clients that the Nikkei is likely to hover between 7,000 and 8,000 points in the coming week. "The rescue plan for Big Three and additional economic stimulus measures in the United States will be the main focus of investors," it said.
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