Tokyo investors are expected to take their cue from overseas, eyeing US economic data and the outcome of a meeting of the Group of 20 finance chiefs, analysts said Friday. The market may see more profit taking amid worries that buoyant markets may have got ahead of themselves given the still-uncertain outlook for the global economy.
Tokyo's benchmark Nikkei-225 index lost 347.03 points, or 3.29 percent, to 10,187.11 over the week to September 4. The Topix index of all first-section shares lost 33.57, or 3.46 percent to 935.74.
Share prices "will likely take a breather" next week, said SMBC Friend Securities strategist Hideaki Higashi. "The Nikkei index may even dip below the key 10,000 level," said Seiichi Suzuki, a strategist at Tokai Tokyo Securities.
Market participants are expected to focus on a US non-farm pay-rolls report that was due later Friday as well as the outcome of a weekend gathering of G-20 finance ministers and central bankers in London. Investors want to know whether the G20 - which includes the United States, Japan and China, top European nations and emerging powers such as India - are preparing to scale back stimulus measures or curb bankers' bonuses.
"Market players may not like it if the ministers step up measures to exit public spending," said Seiichi Suzuki, strategist at Tokai Tokyo Securities. Rising gold prices were already pointing to growing risk aversion, he said.
A more stable yen should provide some support to stocks, said Higashi at SMBC Friend Securities. But "it is unlikely that major stocks will see buying," he added, predicting that investors would be selective about any purchases. Dealers will continue to look for signals from Japan's incoming centre-left government about its economic policy following its recent landslide election that swept the long-ruling conservatives from power. But the historic power change has not served as a strong incentive for investors to buy, said Higashi.
Comments
Comments are closed.