Japanese share prices are likely to remain range-bound in the coming week as periodical buying on dips may offset thinning hopes for an imminent economic recovery, dealers said on Friday. "Dealers had expected the market would decline this week" because the effects of economic policies world-wide were running out of steam, said Seiichi Suzuki, market analyst at Tokai Tokyo Securities.
"Periodical buying on dips supported the share prices and prevented them from falling rapidly." "I expect this trend will continue next week, with the share prices ranging between 9,500 and slightly below 10,000," he added.
Over the week to June 19, the benchmark Nikkei-225 index lost 349.56 points, or 3.45 percent, to 9,786.26. The Topix index of all first section shares shed 31.57 points, or 3.32 percent, to 918.97. Plentiful cash in the market due to easy monetary policies world-wide has increased optimism over past weeks about the global economy.
Japanese Finance Minister Kaoru Yosano said Japan's economy had hit bottom in the January-March quarter, while both the Bank of Japan and the Cabinet Office this week lifted their assessments for a second straight month. But the market's upside was limited, dealers said. "The market is now trying to figure out recovery prospects for fundamentals, as well as how long the current excessive liquidity will last," said Tachibana Securities operating officer Kenichi Hirano. Market players are awaiting several US indicators due next week, such as the US Federal Open Market Committee announcement, housing data, gross domestic product data and durable goods orders.