Tokyo investors to eye US, Japan data

Tokyo investors will look to US and Japanese data next week for clues on the state of the global economy, analysts said, after the announcement this week by the central bank of yet more easing. "Investors are eyeing a string of economic data later next week, including Japan's industrial production and US housing data," Hiroaki Hiwata, strategist at Toyo Securities.
"Market sentiment on the whole is not bad" after the Bank of Japan pledged to expand a bond-buying scheme, but the short term positive effect was offset by negative Chinese manufacturing figures, he added.
The Bank of Japan said Wednesday it would extend its asset-purchasing scheme to inject more liquidity into markets, taking its total easing effort past $1 trillion.
Last week the US Federal Reserve said it would restart a scheme to buy huge amounts of government bonds, while the European Central Bank said it would purchase the debts of under-pressure eurozone nations.
Nomura Securities said in a note to clients: "If uncertainties increase over Japan's industrial output amid concerns over the slowing Chinese economy and anti-Japanese demonstrations, that could lead to expectations for an additional budget" for economic stimulus.
In the week to September 21, the benchmark Nikkei 225 index at the Tokyo Stock Exchange slipped 0.54 percent, or 49.39 points, to 9,110.00.
The broader Topix index of all first-section issues lost 0.07 percent, or 0.50 points, to 756.38.
On Friday, Tokyo shares ended 0.25 percent higher in quiet trade as dealers picked up bargains after the previous day's losses, although there was a lack of strong incentives to drive activity.
But shares in Japan Airlines, which relisted Wednesday after bouncing back from bankruptcy, closed down 4.29 percent at 3,680 yen following an announcement that it was slashing flights to China amid a bitter territorial row between Beijing and Tokyo.
Toyo's Hiwata said the drop in JAL shares "may have a negative impact on investor sentiment, but there also might be buying on dips as this was a fairly large-scale IPO."