Jiji Press TOKYO (Jiji Press) — Tokyo stocks are expected to remain firm this week, with the benchmark Nikkei average possibly testing 22,000, analysts said.
Last week, the 225-issue Nikkei average advanced 211.22 points, or 0.98 percent, to 21,778.74, marking its third straight week of gains.
This week, analysts expect the Nikkei to move between 21,500 and 22,500.
“Stock prices are likely to continue rising on the back of expectations for strong corporate earnings in Japan,” an official of a major brokerage firm said.
The combined profit of listed Japanese companies is expected to rise in the year ending in March 2019 from the previous year.
The Nikkei may test the psychologically important level of 22,000 this week, said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management Co.
Mitsuo Shimizu, equity strategist at Japan Asia Securities Co., said the Nikkei can advance further, possibly to 22,500.
Both strategists said a planned summit meeting between Japanese Prime Minister Shinzo Abe and U.S. President Donald Trump this week is a possible risk factor that may block the Nikkei’s rise past 22,000.
Possible requests by Trump on Japan-U.S. trade may weigh on stocks, they said.
In addition, many market sources said developments in tensions over Syria could send the yen higher against the dollar and, as a result, fuel selling of stocks.