Tokyo investors eye : Chase Franklin International Tokyo News
Tokyo investors eye US data next week Tokyo investors will keep a close eye on US economic data next week as analysts warn that the Japanese market's surge to a six-month high may be short-lived.
Tokyo investors eye US data next week
Tokyo investors will keep a close eye on US economic data next week as analysts warn that the Japanese market's surge to a six-month high may be short-lived.
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<strong>Tokyo</strong> <strong>investors</strong> <strong>eye</strong> US data next week<br />
<strong>Tokyo</strong> <strong>investors</strong> will keep a close <strong>eye</strong> on US economic data next week as analysts warn that the Japanese<br />
market's surge to a six-month high may be short-lived.<br />
'The rally may not last long, but the market will be quick to react to any fresh incentives,' said Toshihiko<br />
Matsuno, strategist at SMBC Friend Securities, on Friday.<br />
'The direction of trading next week will depend on US economic indicators.'<br />
US inflation and housing data are among the figures due out next week.<br />
On Friday, dealers said investor sentiment was boosted after US Federal Reserve chair nominee Janet<br />
Yellen suggested the bank would not start reeling in its stimulus program until the economy was strong<br />
enough and unemployment was lower.<br />
That sent <strong>Tokyo</strong> stocks surging 1.95 per cent to close at their highest level in six months, as a weaker yen<br />
helped boost the market with <strong>investors</strong> betting the US Fed will maintain its easy-money policy. The<br />
scheme has been credited with helping prop up global equity markets.<br />
The benchmark Nikkei 225 index wrapped up Friday's session at 15,165.92, the best finish since hitting a<br />
five-year high in late May, with analysts saying <strong>Tokyo</strong> was back in bull-market territory.<br />
The headline index gained 7.66 per cent over the week.<br />
The Topix index of all first-section issues was up 1.68 per cent at 1,239.04, advancing 5.32 per cent on<br />
the week.<br />
Friday marked a year since Shinzo Abe pledged as leader of the opposition to revive Japan's economy<br />
with unlimited monetary easing measures and huge government spending - a plan later dubbed<br />
'Abenomics'. Within six weeks he was elected.<br />
His promise sparked a plunge in the yen - with the unit losing about quarter of its value against the US<br />
dollar to date - and a stock market rally that has seen the Nikkei soar about 70 per cent since mid-<br />
November 2012.<br />
Abe's growth blitz has helped push down the yen, giving a boost to exporters and stoking a huge rally in<br />
Japan's long-forgotten equity market.<br />
'The market scenery has changed,' Matsuno said.<br />
'Ms Yellen suggested the easy-money policy would continue to prop up the economy, which is<br />
theoretically a negative factor for the dollar,' he added.<br />
But her comments boosted risk sentiment and pushed up stock prices, which prompted <strong>investors</strong> to<br />
jump back in the market, he said, adding that 'many market players moved for buy-backs'.
SMBC Nikko Securities general manager of equities Hiroichi Nishi added: 'It wouldn't be a total<br />
misnomer to call the current rally a 'Yellen Rally'.'<br />
In currency trading, the US dollar topped Y100 for the first time since mid-September, changing hands at<br />
Y100.12 in late <strong>Tokyo</strong> trade, against Y100.00 in New York on Thursday.<br />
In share trading, major exporters were higher with Sony up 3.35 per cent at Y1,846 and Canon rising<br />
1.89 per cent at Y3,230.<br />
Sony was also lifted by upbeat expectations for its new PlayStation 4 games console, which will go on<br />
sale in North America on Friday.<br />
Financial stocks also rose after reporting robust earnings on Thursday.<br />
Mitsubishi UFJ Financial Group, Japan's biggest bank, rose 2.01 per cent to Y658 while rival Mizuho<br />
gained 1.86 per cent to Y218.<br />
<strong>Tokyo</strong> Electric Power climbed 1.45 per cent to Y556 after media reports that the operator of the crippled<br />
Fukushima nuclear power plant would get billions of dollars in fresh bank loans to help fund<br />
decommissioning the site and compensating victims.