Japanese stocks are likely to be range-bound as investors watch a slew of corporate earnings and economic data due out in Japan and the United States, analysts said Friday. "Stocks are likely to move in a narrow range as the earnings season gets in full swing," Nikko Cordial broker Hiroichi Nishi said.
Honda Motor, Sony and other leading Japanese companies are to announce interim earning results next week.
As a new parliament session is due to start, the market will also watch whether new economic policies emerge from the new government, he said. "What the market is looking for is concrete measures to boost the economy," he said. Investors are also expected to keep an eye on currency rates, which are important for exporters.
The benchmark Nikkei-225 index rose 25.43 points, or 0.25 percent, to 10,282.99 over the week to October 23. The broader Topix index of all first section shares edged up 1.08 points, or 0.12 percent, to 902.03. Kazuhiro Takahashi, equity information chief at Daiwa Securities SMBC, said price moves next week would be muted, "given the market has already factored in possible earnings (forecast) upgrades by Japanese companies."
On the data calendar, Japan's industrial production for September will be released on Thursday. "If it confirms Japan's output continues to be on a recovery trend, it will help to support the market," Takahashi said.
Meanwhile, he Bank of Japan is scheduled to release its outlook on the economy and prices as the Tokyo market closes on Friday. Investors are also following developments related to the restructuring efforts of Japan Airlines. Asia's biggest carrier, which lost more than one billion dollars in the April-June quarter, is seeking another public bailout to keep flying and a government-appointed taskforce is overseeing its turnaround plan.
Comments
Comments are closed.