Tokyo, Nov. 7 (Jiji Press)–Tokyo stocks are likely to move narrowly next week, with investors keeping close tabs on the outcome of Sunday’s general election and the release of key Japanese economicindicators.
“The benchmark Nikkei average is expected to move in a boxed range from 10,200 to 10,800,” said Masatoshi Sato, senior strategist at Mizuho Investors Securities Co. “Although the broad trend is seen directed upward, it may take some more time for foreign investors to complete their position adjustment.”
The market is likely to be susceptive to profit-taking selling by foreign investors, as many hedge funds will close their books in November, brokers said.
This week, the 225-issue Nikkei average rose 69.39 points, or 0.7 pct, to finish Friday’s session at 10,628.98 on the Tokyo Stock Exchange.
The key market gauge rallied sharply at the outset heartened by U.S. stocks’ advance to fresh year-to-date highs, but moved on a soft note later in the week as a wait-and-see mood grew ahead of the general election.
Analysts said the market largely expects the tripartite ruling coalition to win a stable majority, and therefore the election’s impact on the market will be neutral.
The market focus will be on Japanese economic fundamentals next week and an optimistic mood may grow if economic data show strong figures. Such indicators include September machinery orders data due out on Tuesday and preliminary figures for fiscal 2003 second- quarter quarter gross domestic product on Friday.
Fourteen private institutes on average expect Japan’s July- September GDP to have grown 0.3 pct from the previous quarter in price-adjusted real terms, according to a Jiji Press poll.END
