Tokyo investors eye BoJ meet, forex markets next week

TOKYO, Aug 01 (AFP): Tokyo investors will be looking to a Bank of Japan policy meeting next week and more corporate earnings, after a slate of negative news took a toll on global markets.
On Friday, Tokyo stocks closed down 0.63 per cent following a sell-off on Wall Street, but the weakening yen may help keep the Japanese market in positive territory, analysts said.
The benchmark Nikkei 225 index lost 97.66 points to finish at 15,523.11 on Friday, but it added 0.42 per cent over the week.
The Topix index of all first-section issues also slipped 0.63 per cent, or 8.12 points, to close at 1,281.30. It was flat on the week, edging down 0.05 points.
The prospect of an early US rate hike has boosted demand for the dollar and weakened the yen, a plus for Japanese shares because it inflates the profitability of exporters such as Sony and Toyota.
US stocks fell sharply on Thursday in a broad sell-off with the Dow Jones Industrial Average tumbling 1.88 per cent, erasing all its gains since the end of 2013.
Among the sentiment-dampening news was weak eurozone data and Argentina's debt default.
Caution also held buying in check before Friday's release of a key US jobs data.
Tokyo's benchmark Nikkei hit a six-month high earlier this week on solid Japanese corporate earnings but analysts were split over whether the Tokyo market would sustain the rise.