With stocks locked in a crosscurrent between rosy expectations and bearish sentiment, activity has been subdued on the Tokyo stock market in recent weeks.

Investors are relieved that the government and the Bank of Japan have begun sounding optimistic about economic prospects and are elated at a reported rise in the money flow from public pension funds.

Yet, the upbeat note lacks strong conviction, with uncertainty surrounding the question of how heightened Mideast tensions and a runup in commodity prices will affect trading in the coming month.