Japanese shares are likely to be supported by hopes of global economic recovery next week, but uncertainties over unrest across the Middle East and North Africa will limit gains, brokers said. In the week to March 4 the headline Nikkei index at the Tokyo Stock Exchange rose 1.59 percent, or 166.9 points, to 10,693.66.
The Topix index of all first section issues gained 1.45 percent, or 13.66 points, to 955.59. "On the back of the economic recovery, the market will be in the mood to test its topside," said Masatoshi Sato, senior strategist at Mizuho Investors Securities.
But he added: "There are risks that the turmoil in Libya would spread to other countries," Sato said. The political upheaval in Libya sent benchmark US crude oil futures sharply higher above $102 dollars per barrel and gold prices hit a record high this week, causing volatile moves in the stock market.
After US economic data indicated the world's largest economy is on a steady recovery path, markets anticipated strong payrolls data due out later Friday, brokers said.
"As the jobs report is expected to be upbeat, the market's mood is seen to stay positive early next week," said Hiroichi Nishi, equity general manager at Nikko Cordial Securities. "Investors will keep a close eye on crude oil prices and foreign exchange moves," Nishi said. Among major economic data to be released next week, Japan will announce machinery orders data for January on Wednesday and revised GDP for October-December on Thursday.
Market participants are also watching Chinese economic data, particularly consumer price index figures scheduled for release on Friday.
"The market may be swayed if the Chinese price data indicates overheating," Sato said.
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