Jiji Press TOKYO (Jiji Press) — The benchmark Nikkei average is seen moving around 20,000 this week, with investors examining corporate earnings reports in the final series of latest announcements.
Last week, the 225-issue Nikkei average fell 7.51 points, or 0.04 percent, to end at 19,952.33 on Friday. Tokyo stocks kicked off the week on a bearish note, with investor sentiment dampened by the yen’s rise against the dollar, while the downside was supported by brisk earnings reports from key companies. The Nikkei average see-sawed around 20,000 for the rest of the week, as the dollar’s weakness continued, reflecting uncertainty on the U.S. economy and worries over the policy management of the administration of U.S. President Donald Trump.
This week, analysts expect the Nikkei to move between 19,500 and 20,300.
“Upcoming corporate earnings reports will attract attention this week” in the Tokyo market, said Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc.
But he also noted that the basic situation of the market is unlikely to change, amid a dearth of fresh trading incentives other than the Japanese companies’ earnings.
The U.S. government’s jobs data for July released Friday is expected to have some impact on Tokyo stocks at the beginning of this week, Ota said. As the U.S. labor market is in a state of full employment, “hourly wages rather than the jobless rate will be closely watched to judge the country’s economic situation,” he said.
Yutaka Miura, senior technical analyst at Mizuho Securities Co. took a more pessimistic view. He said Tokyo stocks are expected to stay on a weak note, as the additional Japanese corporate earnings reports will “only create individual [stock] movements” and not be enough to affect the whole market.Speech