TOKYO MARKET: Investors lose faith in economic growth

JAPANESE telecommunications shares may rise on expectations that new funds will target shares of companies such as NTT Mobile Communications Network, better known as NTT DoCoMo.

Steel companies such as NKK, and other companies closely linked to the performance of the domestic economy, may fall amid concern that a new government spending package will be insufficient to stimulate growth.

"Investment trusts have taken over from foreigners as the main buyers in the market," said Jonathan Allum, strategist at ING Baring Securities. "Some people aren't as convinced as they were before about the economy and think growth may slow down in the next fiscal year."

The benchmark Nikkei 225 stock index fell 96, or 0.5 per cent, to 18,258.55 during the week. It reached 18,659.55 on Thurs-day, the highest since September 1997.

Telecom shares, which have risen 42 per cent in the past 18 days, may extend their gains as investors expect newly started funds to keep buying these shares. Investors say they also expect to see demand for Nippon Telegraph & Telephone after Japan completes the sale of a fifth block of shares in the world's largest phone company.

NTT has risen 43.4 per cent in the last three months as investors delayed buying the shares in anticipation of the additional supply.

Newly introduced funds, including eight started with capital of Y150bn on 30 October, are likely to give a boost to telecom shares and software companies.

A Japanese government economic package announced on Thursday was bigger than investors expected, though it failed to boost shares in construction and machinery companies due to concern that they have too much capacity and too many staff.

Bonds are likely to be little changed, as a strengthening yen may underpin prices now that investors are confident bond sales for the next few months won't expand beyond expectations. If the US Federal Reserve raises rates at its meetingthis week, it could help Japanese bonds by boosting the yen as declining US bonds weaken the attractions of the dollar.

Start your day with The Independent, sign up for daily news emails
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Software Developer / C# Developer

£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...

Neil Pavier: Management Accountant

£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...

Sheridan Maine: Commercial Accountant

£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...

Laura Norton: Project Accountant

£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...

Day In a Page

Sun, sex and an anthropological study: One British academic's summer of hell in Magaluf

Sun, sex and an anthropological study

One academic’s summer of hell in Magaluf
From Shakespeare to Rising Damp... to Vicious

Frances de la Tour's 50-year triumph

'Rising Damp' brought De la Tour such recognition that she could be forgiven if she'd never been able to move on. But at 70, she continues to flourish - and to beguile
'That Whitsun, I was late getting away...'

Ian McMillan on the Whitsun Weddings

This weekend is Whitsun, and while the festival may no longer resonate, Larkin's best-loved poem, lives on - along with the train journey at the heart of it
Kathryn Williams explores the works and influences of Sylvia Plath in a new light

Songs from the bell jar

Kathryn Williams explores the works and influences of Sylvia Plath
How one man's day in high heels showed him that Cannes must change its 'no flats' policy

One man's day in high heels

...showed him that Cannes must change its 'flats' policy
Is a quiet crusade to reform executive pay bearing fruit?

Is a quiet crusade to reform executive pay bearing fruit?

Dominic Rossi of Fidelity says his pressure on business to control rewards is working. But why aren’t other fund managers helping?
The King David Hotel gives precious work to Palestinians - unless peace talks are on

King David Hotel: Palestinians not included

The King David is special to Jerusalem. Nick Kochan checked in and discovered it has some special arrangements, too
More people moving from Australia to New Zealand than in the other direction for first time in 24 years

End of the Aussie brain drain

More people moving from Australia to New Zealand than in the other direction for first time in 24 years
Meditation is touted as a cure for mental instability but can it actually be bad for you?

Can meditation be bad for you?

Researching a mass murder, Dr Miguel Farias discovered that, far from bringing inner peace, meditation can leave devotees in pieces
Eurovision 2015: Australians will be cheering on their first-ever entrant this Saturday

Australia's first-ever Eurovision entrant

Australia, a nation of kitsch-worshippers, has always loved the Eurovision Song Contest. Maggie Alderson says it'll fit in fine
Letterman's final Late Show: Laughter, but no tears, as David takes his bow after 33 years

Laughter, but no tears, as Letterman takes his bow after 33 years

Veteran talkshow host steps down to plaudits from four presidents
Ivor Novello Awards 2015: Hozier wins with anti-Catholic song 'Take Me To Church' as John Whittingdale leads praise for Black Sabbath

Hozier's 'blasphemous' song takes Novello award

Singer joins Ed Sheeran and Clean Bandit in celebration of the best in British and Irish music
Tequila gold rush: The spirit has gone from a cheap shot to a multi-billion pound product

Join the tequila gold rush

The spirit has gone from a cheap shot to a multi-billion pound product
12 best statement wallpapers

12 best statement wallpapers

Make an impact and transform a room with a conversation-starting pattern
Paul Scholes column: Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?

Paul Scholes column

Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?