Tokyo Market: Internet boosts investors' confidence
Sunday 25 April 1999
Investors will be listening for hints about additional government spending aimed at pulling Japan from its worst recession in five decades. "We have the force of momentum," said Takashi Kuribayashi, manager at Mito Securities. "And with America so strong, the money flows into Japan as well - no one is buying on earnings or economic fundamentals."
The benchmark Nikkei gained for a third week in four, closing at 16,923.25. The benchmark may trade between 16,500 and 17,500 this week, Mr Kuribayashi said.
Overseas investors are shifting money into Japanese stocks as they seek markets with room to grow. "Apparently US pension funds are starting to look at the Nikkei," said Chua Soon Hock, strategist at Sanwa Bank. "While, as usual, the Japanese funds are still very defensive, my money is with the foreigners."
Investors will also tune to currency changes after this week's Group of Seven finance ministers meeting, which may give approval for the dollar to trade in the Y120 range, and that level or a weaker yen could lift exporters and technology shares. Moreover, Japan could see more government spending.
"I think Japan could be strong next week ... market sentiment is positive," said Alex Muromcew, manager at Nicholas Applegate Capital Management. "Now we have this rumour that we're going to have yet another fiscal stimulus package from Obuchi. There seems to be good news on the horizon."
The US market's response to results last week from internet companies is likely to be mirrored in Japan. "The internet companies seem to be unable to do any wrong," said Mr Muromcew. "So you probably want to buy Softbank and Yahoo!."
Yet Japan's three big brokers may fall after posting worse-than-expected results after Friday's market close. Nomura posted its biggest loss to date last year. Nikko Securities and Daiwa Securities also announced losses.
Still, with Golden Week holidays starting on Thursday and continuing next week, volume is likely to dwindle and gains may be capped. "No one wants to go out on a limb before a holiday," said Koichi Kurata, at Asahi Life Investment Management.
- 2 The man who filmed the Freddie Gray video has been arrested at gunpoint
- 3 How the language you speak changes your view of the world
- 4 The top 50 cities for young people to live in
General Election 2015: Fishing is on Nigel Farage's mind as he casts a line to the disaffected of Grimsby
Oxygen-starved 'dead zones' with no marine life up to 100-miles long discovered in the Atlantic Ocean
The man who filmed the Freddie Gray video has been arrested at gunpoint
Indonesia executions: Death row British grandmother Lindsay Sandiford will refuse to wear a blindfold when she faces firing squad
Russian warships accused of 'chasing away' Swedish vessel to prevent Baltic States from achieving energy independence
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...