Japan's stock market is likely to be influenced by overseas economic data and domestic political developments next week when investors return from a five-day holiday, analysts said on Friday. The Tokyo stock market will be closed on Monday through Wednesday for a series of public holidays during which new Prime Minister Yukio Hatoyama will head to New York to address the United Nations General Assembly.
"Although there are only two working days during next week, political factors may move the market," said Fujio Ando, fund manager at Chiba Bank Asset Management. "Mr Hatoyama's speech may lift the market up, if he is warmly welcomed by the international community for his policy on climate change, for example," Ando said.
Hatoyama has vowed to slash greenhouse gas emissions by 25 percent from 1990 levels by 2020. US economic data as well as the Federal Reserve's comments at its monetary policy meetings on Tuesday and Wednesday could also influence the Japanese market, said Ryuta Otsuka, strategist at Toyo Securities.
Players want to learn more about the views of the Hatoyama administration's economy ministers, including Finance Minister Hirohisa Fujii and Financial Services Minister Shizuka Kamei, said Otsuka.
"Banking shares have already been moving up and down sharply" after Kamei said he was considering allowing small companies a moratorium of several years on the repayment of loans, noted Otsuka.
Over the week to September 18, Tokyo's headline Nikkei-225 index fell 73.79 points, or 0.71 percent, to 10,370.54. The broader Topix index of all first section shares eased 10.97 points, or 1.15 percent, to 939.44.
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