TOKYO — Tokyo stocks are seen moving in a tight range next week as investors adjust their positions following rebounds in recent sessions during the summer holiday season, analysts said.
In the week to Aug 9, the benchmark Nikkei 225 index advanced 3.93% or 336.33 points to 8,891.44, while the Topix index of all first-section issues rose 3.16% or 22.85 points to 746.79.
In the coming week, “all potential market leads would come from overseas markets, such as U.S. economic indicators and the end of the London Olympics as well as the end of European leaders’ summer vacations,” said Seiichi Suzuki, market analyst at Tokai Tokyo Securities.
“As the number of market participants is limited due to the summer holiday season and as the Nikkei index saw rebounds in recent sessions, players will likely adjust their positions,” Suzuki said.
On Friday, the Nikkei index fell 0.97% on profit-taking and weak Chinese trade data, while Wall Street provided a mixed and largely uninspiring lead.
But the index “is likely to remain resilient, with investors paying attention to a raft of U.S. economic indicators” to see whether the dollar is going to strengthen against the yen, a supportive cue for local shares, Monex Inc chief strategist Takashi Hiroki told Dow Jones Newswires.
Suzuki said he expects the index to move between 8,700 and 9,000 in the coming week.
source: japantoday.com
