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.

PROMOTED VIDEO
News
ebooksNow available in paperback
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

Reach Volunteering: Trustee – PR& Marketing, Social Care, Commercial skills

Voluntary Only - Expenses Reimbursed: Reach Volunteering: Age Concern Slough a...

Reach Volunteering: Charity Treasurer

Voluntary Only - Expenses Reimbursed: Reach Volunteering: Crossroads Care is s...

SThree: Trainee Recruitment Consultant - Soho

£20000 - £25000 per annum + OTE £35,000: SThree: We consistently strive to be ...

Ampersand Consulting LLP: Markit EDM (CADIS) Developer

£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...

Day In a Page

In a world of Saudi bullying, right-wing Israeli ministers and the twilight of Obama, Iran is looking like a possible policeman of the Gulf

Iran is shifting from pariah to possible future policeman of the Gulf

Robert Fisk on our crisis with Iran
The young are the new poor: A third of young people pushed into poverty

The young are the new poor

Sharp increase in the number of under-25s living in poverty
Greens on the march: ‘We could be on the edge of something very big’

Greens on the march

‘We could be on the edge of something very big’
Revealed: the case against Bill Cosby - through the stories of his accusers

Revealed: the case against Bill Cosby

Through the stories of his accusers
Why are words like 'mongol' and 'mongoloid' still bandied about as insults?

The Meaning of Mongol

Why are the words 'mongol' and 'mongoloid' still bandied about as insults?
Mau Mau uprising: Kenyans still waiting for justice join class action over Britain's role in the emergency

Kenyans still waiting for justice over Mau Mau uprising

Thousands join class action over Britain's role in the emergency
Isis in Iraq: The trauma of the last six months has overwhelmed the remaining Christians in the country

The last Christians in Iraq

After 2,000 years, a community will try anything – including pretending to convert to Islam – to avoid losing everything, says Patrick Cockburn
Black Friday: Helpful discounts for Christmas shoppers, or cynical marketing by desperate retailers?

Helpful discounts for Christmas shoppers, or cynical marketing by desperate retailers?

Britain braced for Black Friday
Bill Cosby's persona goes from America's dad to date-rape drugs

From America's dad to date-rape drugs

Stories of Bill Cosby's alleged sexual assaults may have circulated widely in Hollywood, but they came as a shock to fans, says Rupert Cornwell
Clare Balding: 'Women's sport is kicking off at last'

Clare Balding: 'Women's sport is kicking off at last'

As fans flock to see England women's Wembley debut against Germany, the TV presenter on an exciting 'sea change'
Oh come, all ye multi-faithful: The Christmas jumper is in fashion, but should you wear your religion on your sleeve?

Oh come, all ye multi-faithful

The Christmas jumper is in fashion, but should you wear your religion on your sleeve?
Dr Charles Heatley: The GP off to do battle in the war against Ebola

The GP off to do battle in the war against Ebola

Dr Charles Heatley on joining the NHS volunteers' team bound for Sierra Leone
Flogging vlogging: First video bloggers conquered YouTube. Now they want us to buy their books

Flogging vlogging

First video bloggers conquered YouTube. Now they want us to buy their books
Saturday Night Live vs The Daily Show: US channels wage comedy star wars

Saturday Night Live vs The Daily Show

US channels wage comedy star wars
When is a wine made in Piedmont not a Piemonte wine? When EU rules make Italian vineyards invisible

When is a wine made in Piedmont not a Piemonte wine?

When EU rules make Italian vineyards invisible