Japanese share prices are likely to continue on a roll this week after their seven-session winning streak as retailers gear up for a lucrative year-end shopping season, dealers said.
The Nikkei-225 index has set a series of near five-year highs on a groundswell of confidence in the world's number two economy and some robust company results, they note. "This is a good trend with shares in domestic focussed companies going up," said Masayoshi Sano, a strategist of Tokai Tokyo Securities.
With the interim company results season now winding down, economic data may now move centre stage, with the October jobless rate, household spending and industrial production figures all due out next Tuesday.
Investors will also be keeping a close watch on the latest economic snapshots from overseas, particularly the United States where the main blue-chip index has been hitting near four-and-a-half-year highs. A dip in oil prices and optimism about the key holiday shopping season has buoyed sentiment on Wall Street, providing a positive lead for Tokyo.
"If foreign economic data to be reported this week stay firm, the strong momentum will continue, also helped by the Christmas shopping spree," said Sano. "The market may show some cautious movements but I expect prices to keep rising."
The Japanese market has advanced sharply this year, with the Nikkei-225 up over 28 percent so far and the broader TOPIX index 33 percent higher.
Over the past week, the ascent has slowed, with the Nikkei adding only a little over one percent over the five sessions, while the TOPIX slipped on profit-taking.
Kazuhiro Takahashi, an equity specialist at Daiwa Securities SMBC, does not expect the Tokyo market to move rapidly upwards this week either unless there is a particularly positive impetus.
In general, however, the Tokyo market remains on an upward trend with the Nikkei on course to hit the 15,000 points level by the year end, he added. For the week ending November 25, the Tokyo Stock Exchange's benchmark Nikkei-225 index rose 161.17 points or 1.10 percent to 14,784.29, the highest closing level since December 2000.
The broader TOPIX index of all first-section shares dipped 1.98 points or 0.13 percent to 1,529.67.