Monday May 28, 2012
EUROPEís sovereign debt crisis will weigh on Japanese equities this week
TOKYO: EUROPE's sovereign debt crisis will weigh on Japanese equities this week but investors are also keeping an eye on US and Chinese data for any hint of a global recovery, dealers said on Friday.
In the week to May 25, the benchmark Nikkei 225 Index at the Tokyo Stock Exchange lost 0.36%, or 30.92 points, to 8,580.39.
The broader Topix Index of all first-section issues fell 0.47%, or 3.43 points, to 722.11.
Tokyo shares had a bumpy ride last week, reflecting investors' uncertainty over the euro as a summit that ended on Thursday ended without agreement on how to deal with the crisis.
“The European problem will continue to weigh on the market but I don't think investors will move actively before the Greek elections on June 17,” said Masahiro Yamaguchi, strategist at Mizuho Securities.
Analysts hope next month's poll will end a political stalemate in Greece but there are widespread fears that it will see anti-austerity parties win, which could eventually lead to the country exiting the euro.
But Yamaguchi added: “As stocks have sunk to a bottom in the past weeks, some investors are seeking an opportunity to buy on dips, paying attention to US and Chinese economic indicators due out this week.
“If US and China data turn out to be strong, hopes of economic recovery would help boost share prices.” The headline Nikkei Index will likely trade between 8,300 and 9,000 next week (this week), he added. AFP