Tokyo investors eye Japanese earnings, US data

Tokyo investors will be looking to earnings from some of Japan's best-known companies next week, as well as fresh US data and a Federal Reserve policy meeting. On Friday, Tokyo stocks rose 1.13 percent to close at a six-month high after a healthy US jobless claims report boosted the dollar against the yen, sending exporter shares higher.
The benchmark Nikkei 225 index added 173.45 points to 15,457.87, its best finish since late January. Over the week, the index added 1.59 percent. The Topix index of all first-section issues rose 0.90 percent, or 11.49 points, to 1,281.35. It notched up a weekly gain of 1.43 percent. "Institutional investors are awaiting earnings reports from major companies next week before actively buying shares," said Nobuyuki Fujimoto, senior market analyst at SBI Securities.
Sony, Nissan and Japan Airlines are among the firms reporting their latest quarterly results in the coming weeks, with markets expecting buoyant results, analysts said.
Upbeat earnings could see the Nikkei climb above the 15,500 level and "that may push it toward the 16,000 mark," Nomura Securities said.
The Nikkei ended last year at just under 16,300, after logging its best annual return in over four decades.
Simmering geopolitical tensions, including Israel's invasion of Gaza and the aftermath of a Malaysia Airlines jet crash in violence-wracked Ukraine, will also be on investors' radar screens, "but their impact on the Tokyo market will be limited", Fujimoto said.
In currency trading Friday, the dollar held steady after rallying against the yen in New York but gains were capped as weak home sales data offset figures showing unemployment insurance benefit claims at an eight-year low. The greenback fetched 101.87 yen, against 101.81 yen in New York, where it had jumped from 101.47 yen thanks to strong Chinese manufacturing data.
A weaker yen is positive for Japanese exporters as it makes them more competitive abroad and increase profits when repatriated.
Sony shares rose 2.81 percent to 1,791.5 yen and Toyota was up 0.60 percent at 6,107.0 yen.
Trading giant Itochu rose 2.50 percent to 1,348.0 yen after announcing late Thursday that Thailand's Charoen Pokphand Group could buy a 4.9 percent stake in it for $1.0 billion.