Tokyo investors eye US jobs, await demand clues

02 Feb, 2015

Tokyo investors will watch closely a set of demand-linked data in Japan next week for clues on the health of the economy after it tipped into recession last year, while US data will also be in focus.
Dealers are awaiting Japan's auto sales data for January expected on Monday and household income data due Wednesday "to see the extent of rise in winter bonus and overtime work provisions," Nomura Securities said in a statement. The brokerage noted that real wages are not increasing despite rises in consumer prices.
US payrolls data due to be released Friday next week will be in focus for possible clues as to the US Federal Reserve's next move, it said, with speculation the Fed could raise interest rates later this year.
On Friday, the Nikkei 225 index at the Tokyo Stock Exchange closed up 0.39 percent, or 68.17 points at 17,674.39. Over the week, the benchmark index gained 0.93 percent.
The broader Topix index of all first-section shares gained 0.11 percent, or 1.49 points, to end at 1,415.07. It tacked on 0.84 percent for the week.
"There is growing confidence in the US economy... Employment has gotten better and the effects from cheaper oil have yet to come," Shigetoshi Kamata, general manager of the research department at Tachibana Securities, told Bloomberg News.
Markets largely shrugged off Japanese government data Friday that showed inflation slowed for a fifth straight month in December with household spending also falling, in a blow to Tokyo's efforts to kick-start the world's number three economy.
Honda closed down 0.77 percent at 3,581.0 yen after the automaker said it is probing a deadly crash in the United States possibly linked to exploding air bags blamed for killing at least five people, and which sparked the recall of millions of vehicles world-wide.
Honda reported after the market close it has cut full-year profit forecast by 3.5 percent to $4.6 billion as it faces soaring recall costs from an exploding airbag crisis. Shares in embattled airbag supplier Takata fell 2.46 percent to 1,386 yen.
Toshiba tacked on 2.30 percent to 474.6 yen after it said Thursday it was getting out the North American television business, citing a tough market, as it reported soaring nine-month earnings.

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