Jiji Press TOKYO (Jiji Press) — Tokyo stocks are expected to be swayed by earnings announcements by major export-oriented Japanese companies this week.
Last week, the benchmark 225-issue Nikkei average lost 218.91 points, or 1.01 percent, to end at 21,466.99 on the Tokyo Stock Exchange. The Tokyo market was closed Monday for a national holiday.
The market was battered by trade war concerns rekindled by U.S. President Donald Trump threatening that he still has the option of imposing tariffs on over $300 billion of additional Chinese goods.
This week, the Nikkei average is expected to move mainly between 20,900 and 21,800 under the influence of earnings results and outlooks, analysts and brokers said.
Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc., noted that given such negative factors as the U.S.-China trade war, investors have already anticipated weak earnings performance of export-oriented technology firms.
Under this circumstance, the Nikkei could jump if companies including motor manufacturer Nidec and wafer maker Shin-Etsu Chemical show business results for April-June and outlooks for the full year through next March that are “not as bad as feared by market players,” he said.
Both Nidec and Shin-Etsu Chemical will release their financial statements on Wednesday.
Among other companies set to report their earnings this week are camera maker Canon, automakers Mitsubishi and Nissan, and chipmaking gear manufacturer Tokyo Electron.
Meanwhile, Yutaka Miura, senior technical analyst at Mizuho Securities Co., warned that the Nikkei may drop to around 20,900 if tensions between the United States and Iran heighten any further, after a U.S. warship brought down an Iranian drone in the Strait of Hormuz.Speech