Tokyo investors likely optimistic

Investors in Japanese shares will likely be optimistic next week as speculation for the Fed rate hike is receding and as commodity prices pick up, analysts say. In the mid-week, Tokyo stocks ended six straight days of gains as data showing machine orders - a key indicator of the economy's strength - unexpectedly shrank in August.
But share prices were lifted once more Friday, picking up a strong lead from Wall Street after minutes from the Federal Reserve's latest policy meeting suggested it could keep interest rates at record lows into 2016.
On Friday, the benchmark Nikkei 225 index at the Tokyo Stock Exchange closed 297.50 points higher at 18,438.67, up 4.03 percent over the week.
The broader Topix index of all first-section shares jumped 2.28 percent, or 33.73 points, to 1,515.13. It gained 4.86 percent in the week.
The early lift was also supported by bargain-hunting, which emerged after a decline the previous day when the Tokyo bourse ended six straight days of gains.
"Overall, the risk-on mood is strengthening thanks to the receding expectations for a rate hike and the return of commodity prices," Tomoichiro Kubota, a senior analyst at Matsui Securities, told Bloomberg News.
In the US, the Dow Jones Industrial Average advanced 0.82 percent while the broad-based S&P 500 rose 0.88 percent.
Minutes from the Fed's September 16-17 meeting emphasised policymakers' concerns about the slowing global economy, led by China, and the drag of the stronger dollar on the US.
The Fed decided at that meeting against hiking rates.
Juichi Wako, a senior strategist at Nomura Holdings Inc, said the Japanese markets were unlikely to make any extreme movements.
"We're in a Goldilocks state where the economy is looking positive, but the rate hike will probably be pushed back," he told Bloomberg News.
"We'll continue to see a correction of excessive pessimism," he added. On currency markets, the dollar was at 120.14 yen afternoon trade against 119.92 yen late Thursday in New York.
The euro traded at $1.1278 and 135.50 yen against $1.1275 and 135.21 yen.
In Tokyo trade, Toyota gained 2.05 percent to 7,500 yen, while Sony advanced 1.83 percent to 3,211 yen.