Tokyo stock prices are likely to stay weak and stage only moderate, occasional rallies, amid concerns that the U.S economy could be facing a possible hard landing and amid uncertainty surrounding the domestic economy and corporate earnings.
Downside risks also remain due to the unfavorable demand and supply situation resulting from selloffs to unwind cross-shareholding ties among businesses in the January-March quarter in the runup to the fiscal 2000 book-closings.
Plunging stock prices at the end of 2000 and at the start of this year were, however, partly attributable to concentrated settlements of margin-buying contracts that were concluded last summer.