adminTOKYO. — Tokyo investors this week will be looking for more clues about the state of the US economy, while Japanese trade data due today mark the latest measure of Tokyo’s growth-boosting plan.In the week to August 16, the benchmark Nikkei 225 index rose 0,26 percent, or 34,92 points, to 13 650,11, while the broader Topix index of all first-section shares added 0,15 percent, or 1,74 points, to 1 142,65.
The Tokyo market see-sawed for much of the past week with many market players out of action during a Japanese summer holiday.
But with a mixed bag of fresh data on the US economy this week, dealers will be looking for more evidence that the Federal Reserve is getting ready to pull back on its massive stimulus plan, known as quantitative easing.
“If US Fed tapering proceeds, a great deal more air is likely to come out of equities markets generally, which will naturally spell more selling for Japan shares,” said a director of equity trading at a foreign brokerage.
While a pullback on the Fed scheme would mean the world’s largest economy is on firmer footing, the move could spook investors since the easy money plan has been credited with helping support global equity markets.
Despite those fears, the Nikkei may still be an attractive buy, the trading director added.
“The Nikkei 13 000 mark represents a good entry point for a lot of foreign investors who see current market values as interesting, but not compelling enough to commit capital amid uncertainty over government fiscal policy and lower liquidity levels,” the director said. — AFP.
Online Reporter