Tokyo Market: Markets may be hamstrung by the banks

JAPANESE stocks may trade mixed this week. Exporters are likely to gain on signs that the Japanese government will tolerate a weaker yen. Banks may fall on concern that corporate shareholders will sell to raise cash before they close their books at the end of March.

Sony, Fuji Photo Film and other companies that rely heavily on US sales are set to rise further if Japanese officials keep talking up the dollar, investors say.

The dollar rose to an 11-week high of Y120.75 on Friday following a chorus of official statements favouring a weaker yen. That bolsters exporters' dollar-denominated earnings when they're repatriated.

But the market may be hamstrung by banks as the approach of the end of the Japanese fiscal year on 31 March ratchets up pressure on insurance companies and other large corporate investors to improve their balance sheets by selling assets.

"The Japanese government has made it pretty clear that it can live with the dollar at Y120, and that's encouraging for the blue-chip exporters," said Hideo Kito, president of Tokyo Kito Investment Management. "But the end of the fiscal year gives the upper hand to sellers in this market."

The key Nikkei 225 average is likely to move between 13,800 and 14,200, Mr Kito predicted. The benchmark last week rose 0.9 per cent to 14,098.04.

Recent gains by bank shares on the back of a government bailout plan have increased the temptation to sell for cash-hungry companies. The Topix banks index has risen 3.5 per cent in the last two weeks, boosted by financial authorities who gave a preliminary nod to their request for Y7,450bn in emergency public funding.

Daiwa Securities said last week it wants to sell as much as Y50bn in shares it holds in other companies in the near future. Traders are also bracing for more unpleasant surprises as Japanese companies begin posting interim earnings en masse.

Matsushita Electric Industrial, Japan's biggest consumer electronics company, reports third-quarter results on Tuesday, and tiremaking giant Bridgestone meets the press on Friday.

Bonds are likely to rise as record-low overnight lending rates will probably encourage investors to seek higher yielding long-term bonds. Last week, the Bank of Japan cut the rate to a low of 0.15 per cent to help pull the economy out of recession. Last week, the benchmark bond yield fell 32 basis points to 1.760 per cent.

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
Sport
Kim Sears is reported to have directed abuse at Berdych
tennis
Arts and Entertainment
Cold case: Aaron McCusker and Christopher Eccleston in ‘Fortitude’
tvReview: Sky Atlantic's ambitious new series Fortitude has begun with a feature-length special
Voices
Three people wearing masks depicting Ed Miliband, David Cameron and Nick Clegg
voicesPolitics is in the gutter – but there is an alternative, says Nigel Farage
Voices
The veterans Mark Hayward, Hugh Thompson and Sean Staines (back) with Grayson Perry (front left) and Evgeny Lebedev
charity appealMaverick artist Grayson Perry backs our campaign
News
i100
News
people
ebooks
ebooksA special investigation by Andy McSmith
Sport
Chelsea manager Jose Mourinho
footballThe more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him
Life and Style
Vote green: Benoit Berenger at The Duke of Cambridge in London's Islington
food + drinkBanishes thoughts of soggy school dinners and turn over a new leaf
News
Joel Grey (left) poses next to a poster featuring his character in the film
peopleActor Joel Grey comes out at 82
News
i100
News
business
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

Recruitment Genius: Compliance Assistant

£13000 per annum: Recruitment Genius: This Pension Specialist was established ...

Ashdown Group: Market Research Executive

£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...

Recruitment Genius: Technical Report Writer

£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...

MBDA UK Ltd: Indirect Procurement Category Manager

Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...

Day In a Page

Isis hostage crisis: The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power

Isis hostage crisis

The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power, says Robert Fisk
Missing salvage expert who found $50m of sunken treasure before disappearing, tracked down at last

The runaway buccaneers and the ship full of gold

Salvage expert Tommy Thompson found sunken treasure worth millions. Then he vanished... until now
Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Maverick artist Grayson Perry backs our campaign
Assisted Dying Bill: I want to be able to decide about my own death - I want to have control of my life

Assisted Dying Bill: 'I want control of my life'

This week the Assisted Dying Bill is debated in the Lords. Virginia Ironside, who has already made plans for her own self-deliverance, argues that it's time we allowed people a humane, compassionate death
Move over, kale - cabbage is the new rising star

Cabbage is king again

Sophie Morris banishes thoughts of soggy school dinners and turns over a new leaf
11 best winter skin treats

Give your moisturiser a helping hand: 11 best winter skin treats

Get an extra boost of nourishment from one of these hard-working products
Paul Scholes column: The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him

Paul Scholes column

The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him
Frank Warren column: No cigar, but pots of money: here come the Cubans

Frank Warren's Ringside

No cigar, but pots of money: here come the Cubans
Isis hostage crisis: Militant group stands strong as its numerous enemies fail to find a common plan to defeat it

Isis stands strong as its numerous enemies fail to find a common plan to defeat it

The jihadis are being squeezed militarily and economically, but there is no sign of an implosion, says Patrick Cockburn
Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action

Virtual reality: Seeing is believing

Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action
Homeless Veterans appeal: MP says Coalition ‘not doing enough’

Homeless Veterans appeal

MP says Coalition ‘not doing enough’ to help
Larry David, Steve Coogan and other comedians share stories of depression in new documentary

Comedians share stories of depression

The director of the new documentary, Kevin Pollak, tells Jessica Barrett how he got them to talk
Has The Archers lost the plot with it's spicy storylines?

Has The Archers lost the plot?

A growing number of listeners are voicing their discontent over the rural soap's spicy storylines; so loudly that even the BBC's director-general seems worried, says Simon Kelner
English Heritage adds 14 post-war office buildings to its protected lists

14 office buildings added to protected lists

Christopher Beanland explores the underrated appeal of these palaces of pen-pushing
Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Scientists unearthed the cranial fragments from Manot Cave in West Galilee