Business / Financial Markets | TSE DATA & REPORT

Nikkei dips, likely to be range-bound ahead of earnings reports


Tokyo stocks are expected to stay range-bound next week ahead of earnings reports from major Japanese companies later this month.

The benchmark 225-issue Nikkei average lost 60.48 points, or 0.28 percent, to end at 21,685.90 on the Tokyo Stock Exchange, after a wait-and-see mood prevailed ahead of congressional testimony by U.S. Federal Chairman Jerome Powell on Wednesday and Thursday.

Powell’s dovish testimony raised expectations of an early interest rate cut by the Fed and sent Wall Street to record-high levels. Tokyo stocks also posted gains, but a stronger yen limited their upside.

Next week, the Nikkei is expected to move mainly between 21,300 and 21,800, analysts and brokers said. The Tokyo market will be closed on Monday for a national holiday.

Quiet trading is expected to continue in the Tokyo market ahead of the House of Councilors election on July 21 and earnings releases for April-June by major companies, said Masayuki Otani, chief market analyst at Securities Japan Inc.

With major U.S. firms to report their business performances in advance of their Japanese counterparts next week, “U.S. corporate earnings and economic data such as June retail sales and industrial production will likely draw investor attention,” Otani said.

Effective Tuesday, the settlement date for Japanese stocks will be reduced to two business days after transactions are made, from three at present. Worries about system errors related to the change will serve as another wait-and-see factor until Thursday, said Hiroaki Kuramochi, chief market analyst at Capital Partners Securities Co.

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