TOKYO, May 9 (AFP): Japanese stocks will likely come under pressure next week with no major positive incentives expected, while geopolitical concerns will weaken the dollar, analysts said Friday.
Slowing Chinese inflation, which fell sharply to 1.8 per cent in April-the lowest point in 18 months-will also have a negative impact on Japanese stocks, they said.
On Friday, Tokyo shares rose 0.25 per cent as bargain-hunting offset early selling triggered by a strong yen.
The Nikkei gained 35.81 points on the day to close at 14,199.59, nowhere near enough to make up the loss over the week, ending down 1.78 per cent.
The broader Topix index of all first-section shares climbed 0.47 per cent, or 5.50 points, to 1,165.51. It lost 1.44 per cent over the week.
"We will have the January-March economic growth rate to be announced Thursday next week, with the reading expected to be somewhat positive due to the effect of last-minute buying before the April tax hike," said Daisuke Uno, chief market strategist at Sumitomo Mitsui Banking Corp.
"But investors have already digested the impact. We expect no other incentives next week," he said, adding share prices could suffer from this lack of direction.
He also said geopolitical concerns about Ukraine and the maritime tensions in the South China Sea-where China and Vietnam are involved in scuffles over disputed waters-are also expected to keep the greenback weak.
"The Chinese consumer price index was weak and Shanghai stocks lost some of their shine, which is not good news for Japanese stocks over the next week," Uno said.
Tokyo stocks likely to feel pressure next week
FE Team | Published: May 10, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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