Japanese shares are likely to extend gains to fresh near five-year highs this week as momentum that took the market through 14,600 points for the first time since December 2000 continues, dealers said.
"Japanese shares will rise moderately this week. As the market has momentum, there is no worry," said Toshihiro Matsuno, analyst at SMBC Friends Securities, noting that some dealers even expect stocks to reach 15,000 this week.
"There are no negative factors pulling down the shares, although the market is overheated," Matsuno said.
Shares rode the coat-tails of New York markets at the end of this week after the technology-rich Nasdaq index powered ahead to reach mid-2001 heights in New York overnight.
If US shares continue to advance, Japanese shares are also likely to rise early this week, said Kazuhiro Takahashi, equity general manager at Daiwa Securities SMBC.
"But after that, Japanese shares might see some adjustment phase since US trade will slow down toward Thanksgiving holiday (Thursday)," said Kazuhiro Takahashi, equity general manager at Daiwa Securities SMBC.
Japan will also have a four-day trading week because of a national holiday on Wednesday.
Dealers said that the market was unlikely to be influenced significantly by Japanese economic indicators this week such as October trade statistics Tuesday and the November consumer price index Wednesday.
While shares have risen across the board, Toyota Motor on Friday hit the highest closing level since it was listed on the Tokyo Stock Market in 1949, rising 4.43 percent to 5,890 yen.
The market also waited for financial sector - including banks and insurance - earning results this week, Takahashi said.
For the week ending November 18, the Tokyo Stock Exchange's benchmark Nikkei-225 index gained 468.06 points or 3.31 percent to 14,623.12.
The broader TOPIX index of all first section shares added 37.09 points or 2.48 percent during the week to close at 1,531.65.
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