Tokyo shares seen rangebound next week

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

Tokyo shares close mixed

TOKYO — Tokyo stocks closed mixed on Monday with analysts saying worries over political uncertainty in Greece was weighing on investor sentiment.

The Nikkei 225 index at the Tokyo Stock Exchange ended up 20.53 points at 8,973.84. The broader Topix index of all first-section issues lost 0.22%, or 1.70 points, to 756.68.

The headline index turned lower during the Monday session as a bump in purchases of China-related shares ran its course, analysts said.

The buying was spurred by the Chinese central bank’s announcement Saturday that it would cut the reserve requirement ratio for banks to boost liquidity and help inject some energy into a slowing economy.

With Japanese earnings season all but done, Tokyo stocks are not likely to see sharp spikes in either direction, analysts said.

“Prices likely won’t see a catapult forward, but things are now set for a slow grind forward,” said CLSA equity strategist Nicholas Smith.

Investors are wary of turmoil in Greece, where efforts to form a coalition government have so far failed, raising the prospect of new elections that could scupper austerity reforms and possibly force the country out of the eurozone.

Greek voters earlier this month punished ruling parties in a backlash against severe austerity measures in return for multi-billion-euro international loans.

“The lack of transparency, particularly in Europe, with the possibility of Greek re-elections in mid-June, is a worry that looks to remain with us for the time being,” said Monex market analyst Toshiyuki Kanayama.

“And that will keep the investor bias to the downside,” he said.

On currency markets Monday, the euro stood at $1.2888 and 103.10 yen in Asian trade, slipping from $1.2921 and 103.26 yen in New York on Friday.

The dollar was at 79.99 yen from 79.93 in New York.

source: japantoday.com