Japanese shares are expected to receive buying support next week with market participants forecasting recovery signs in key indicators, dealers said. They also said the April 1 listing of Japan's second largest insurer Dai-Ichi Mutual Life Insurance Co is expected to give a big boost to the Japanese market.
The Bank of Japan's Tankan survey of business confidence, which is due on Thursday, is widely expected to show an improvement in sentiment among manufacturers, supporting hopes that the economy is on the mend, analysts said.
"The Tankan is expected to show strong figures this time, which will give a fresh cue of buying in the market," said Masumi Yamamoto, equity market analyst at Daiwa Securities Capital Market.
"Players are also expecting much from the listing of Dai-ichi Mutual Life, which is likely to stimulate the equity market," Yamamoto said.
Dai-ichi Mutual Life has set an initial offering price at 140,000 yen (1,500 dollars), the middle of its previously announced tentative price range, for the 10 million shares, for a total of 1.4 trillion yen.
Of these, about 7.2 million shares will be released to retail investors, raising 1.01 trillion yen, with some five million shares sold domestically and more than two million overseas, the company said.
Okasan Securities strategist Hirokazu Fujiki also said the yen's recent decline, which is said to enhance competitiveness of Japanese goods overseas, is likely to support export-oriented issues. "The market environment is quite positive," Fujiki said. "The current buying sentiment is firm enough to offset profit-taking."
In the week to March 26, the Tokyo Stock Exchange's benchmark Nikkei-225 added 171.65 points or 1.59 percent to 10,996.37. The broader Topix index of all first-section shares gained 17.79 points or 1.87 percent to 966.72. Investors are also closely watching US data to be released next week, including payroll figures, Daiwa's Yamamoto said.
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