Japanese share prices are likely to rebound in this week, when major firms such as NEC, Fujitsu and Honda Motor are expected to announce solid results for the last quarter of 2004, analysts said. The local market has been hit by losses on Wall Street and concerns that a sharp rise in the yen against the dollar would hurt Japanese exports, but the dollar's slight recovery somewhat eased those jitters by the end of the week.
Analysts said investors largely maintained their confidence in sustained Japanese economic growth this year despite slower exports seen in recent trade data.
"Sentiment is positive as investors expect steady corporate earnings in the coming week," said Hiroyuki Nakai, senior market analyst at Tokai-Tokyo Research Center.
Hi-tech giants such as NEC, Fujitsu and Canon as well as Honda and Japan's second-largest telecommunications carrier KDDI, were scheduled to announce their earnings in the coming week.
Sony, which sharply cut its full-year forecast for sales and pretax profit, was also scheduled to announce quarterly results.
The negative impact of Sony's profit warning on rival electronics makers was relatively mild in trade Friday as it was their success in digital products which was behind Sony's distress.
In the week that ended January 21, the Tokyo Stock Exchange's benchmark Nikkei-225 index lost 200.02 points or 1.75 percent to 11,238.37. Analysts forecast the index could likely rise to 11,500 in the coming week.
The broader TOPIX index of all First Section shares fell 13.51 points or 1.18 percent to 1,132.18 during the week.
While the Nikkei index would likely hold firm on strong corporate earnings, UFJ Institute market analyst Shinichiro Kobayashi said gains would be limited by the recent slump on Wall Street.
"Positive Japanese results alone cannot lift the Nikkei index to the 12,000-point level," he said, adding: "As the index is closely linked to moves in New York, foreign investors may refrain from buying Japanese shares."
Average trading volume on the main board of the Tokyo Stock Exchange totalled 1.60 billion shares in the past week, from 1.64 billion shares a week earlier.
Total trading value stood at 1.16 trillion yen (11.3 billion dollars) on average, from 1.29 trillion yen in the previous week.
Among major shares, NEC fell 15 yen or 2.48 percent to 590 yen and its rival Fujitsu lost 12 yen or 1.88 percent to 627 yen.
Sony lost 200 yen or 4.96 percent to 3,830 yen in the week, after it issued a profit warning in the face of tough price competition in the core consumer electronics market.
Japan's top carmaker Toyota Motor fell 90 yen or 2.17 percent to 4,060 yen and Nissan Motor declined 23 yen or 2.03 percent to close at 1,112 yen.
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