Sharechat Logo

Nikkei seen higher but rise limited before CPI

Thursday 30th November 2006

Text too small?
Tokyo stocks are seen likely to move higher on Thursday, with investors snapping up energy stocks on higher oil prices and exporters such as Sony Corp. following gains on Wall Street.

But investors may be wary of pushing the market too high ahead of several key economic indicators on Friday, including jobless data and the core consumer price index (CPI), which could give clues on when the central bank will raise interest rates.

"Although investors will likely return to exporters, especially high-tech stocks, they are expected to hold back somewhat ahead of tomorrow's CPI data. Gains will be limited," said Yosuke Shimizu, head of investment information at Monex.

Nikkei futures pointed to a rise in the market. December futures traded in Chicago closed at 16,185 on Wednesday, up 85 points from their close in Osaka .

The Nikkei average is likely to move between 16,100 and 16,300 on Thursday, Shimizu said, after closing the previous session up 1.4% at 16,076.20.

Investors could shift money into shares in oil companies such as Nippon Oil Corp. after US crude oil for January delivery surged $1.47 to settle at $62.46 a barrel.

Steel stocks are also expected to do well following a report in business daily Nihon Keizai that Baosteel Group Corp. may ask Nippon Steel Corp. to take a stake in the Chinese company, Shimizu added.

In the United States, the Dow Jones industrial average rose 0.74% after a surge in oil prices lifted energy stocks and the government raised its estimate for economic growth in a key market for Japanese goods.

Japan will announce housing starts data for October later in the day. The market expects a 1.1% fall from a year earlier, compared with a 4% rise in the previous month.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Scott Technology appoints new CEO
Synlait FY24 guidance withdrawal
Meridian issues demand response exercise notice to NZAS
July 17th Morning Report
CRP - Korella North Environmental Approval Granted
SCL - Sale of Apple Orchards
Blackpearl Group Q1 FY25 Results Announcement
Devon Funds Morning Note - 16 July 2024
July 16th Morning Report
New privacy toolkit set to support business and organisations