Tokyo stocks are likely to firm this week, with hopes high for an upward revision to Japan's growth and after US investors, back from holidays, cast fresh eyes on the world's second-largest economy.
A focus for the week will be the battle for Japan's fourth-largest bank, UFJ Holdings Inc. It is set to decide by Friday whether to accept a capital injection from fellow bank Mitsubishi Tokyo Financial Group Inc (MTFG) rather than tie-up with rival suitor Sumitomo Mitsui Financial Group Inc.
While US chip-related stocks sank in the aftermath of a disappointing revenue and profit outlook from technology bellwether Intel Corp last week, Wall Street's blue chips held up quite well, which may reassure investors.
Strong US jobs data on Friday was also positive for the US economic outlook. Japan's benchmark Nikkei average slid 1.7 percent last week to 11,022.49.
Some market participants say they expect the benchmark Nikkei average to trade at the higher end of its recent range of 10,500 to 11,500, but others looked for a move higher into new territory.
Since the beginning of August, South Korea's benchmark KOSPI index has jumped 12 percent and Taiwan's TAIEX index has risen 6 percent. In contrast, the Nikkei has fallen 2.7 percent.
There will a slew of Japanese data this week wrestling for investor attention.
The Finance Ministry's survey of corporate capital spending for the April-June quarter, out on Monday, is expected to be strong, which would prompt an upward revision in final second-quarter GDP data due on Friday.
Preliminary real GDP data showed a 0.4 percent rise over the first quarter with capital spending flat.
Machinery orders data for July will be released on Thursday, with a Reuters poll of analysts predicting a median forecast of a 2.5 percent fall in core orders from a month earlier.
The highly volatile series, seen as a leading indicator of capital spending, may take the some off the shine of what is otherwise expected to be a week of mostly positive data.
But few expect the date to cast real doubt on the prevailing view of a solid economic recovery despite slower growth.
As well as the tussle for its ownership, one of UFJ's problem debtors will also be active. Trading house Sojitz Holdings Corp is expected to unveil a new business plan seeking capital from UFJ and Swiss Bank UBS AG.
Nippon Steel Corp, Japan's biggest steel maker, and other steel makers will on Thursday revise earnings forecasts for the business year to March.
Film studio Metro-Goldwyn-Mayer Inc may also choose between a Sony Corp-led investor group and Time Warner Inc as the buyer for its assets as early as this week.
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