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TOKYO (Jiji Press) — Tokyo stocks are expected to continue performing solidly this week now that fear of systemic risk has diminished, market sources said Friday.
Last week, the Nikkei average of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section advanced 656.23 points, or 2.40%, to end at 28,041.48.
The market extended gains for the third straight session through March 29, mainly aided by buying to secure dividend rights for fiscal 2022 through Friday.
Although it suffered a setback on Thursday due to ex-dividend selling, the market bounced back on the final day of the fiscal year as a risk-on mood grew amid receding worries about turmoil in the banking sector, with the Nikkei retaking 28,000 for the first time in some three weeks.
This week, the Nikkei is expected to move mainly between 27,500 and 28,500, analysts and brokers said.
The market will be pressured by profit-taking, but at the same time its downside will remain firm, said Masayuki Otani, chief market analyst at Securities Japan Inc.
“Stocks are likely to seesaw” while investors are paying attention to how global markets react to economic data and the fluctuations of the dollar-yen rate, Otani went on to say.
Economic data scheduled to be released this week include the Bank of Japan’s “tankan” quarterly business sentiment survey for March, due out Monday, the Institute for Supply Management’s U.S. manufacturing and nonmanufacturing purchasing managers’ indexes for March, due out on Monday and Wednesday, respectively, and the U.S. Labor Department’s employment report for March, to be released Friday.
“It remains to be seen whether the market will extend its rally,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.
