Friday May 16, 12:02 AM
Tokyo shares outlook - Higher on Wall Street advance, GDP data eyed
TOKYO (Thomson Financial) - Japanese shares are expected to open higher on Friday, tracking gains on Wall Street overnight,
with investors eyeing the gross domestic product data due out before the market opens.
Japan's
economy is expected to have grown modestly for the third straight quarter in the
three months ended in March as rising demand in emerging markets like China lifted exports
The average forecast in a Thomson Financial News poll of 10 economists was for GDP growth
of 0.4 percent for the quarter and an annualized rate of 1.5 percent.
In the December quarter, GDP grew 0.9 percent from the previous quarter and by an annualized pace of 3.5 percent.
Overnight, U.S. stocks rose for a second day following a drop in oil prices and some
better-than-expected economic data.
The Dow Jones industrial average rose 94.28 points, or 0.7 percent, to 12,992.66.
Mitsubishi UFJ Securities manager Minoru Shioiri said investors should not be too optimistic
even if recent data showed the resilience of the U.S. economy.
'Given the fact that U.S. financial institutions have not loosened their lending stance, this may
further affect economic activity there,' said Shioiri. 'The past bad debt experience in Japan shows that these things will not be resolved so easily.'
The Chicago-traded Nikkei (news) futures contract settled at 14,375 points, up from 14,300 on the Osaka Securities Exchange Thursday, suggesting a firm start for the market.
The Nikkei 225 Stock Average closed up 133.19 points or 0.9 percent at 14,251.74, while the broader Topix rose 19.83 points or 1.4 percent to 1,392.87.
Also ahead, the Ministry of Economy, Trade and Industry will release revised industrial output
data for March while the Cabinet Office will release its consumer confidence survey for April.
On the corporate front, Resona Holdings Inc (Berlin: DW1.BE - news) . and Sumitomo Mitsui Financial Group Inc. will release earnings for the year through March.
Stocks to watch include Mizuho Financial Group Inc. after Japan's second-largest banking group reported a 49.8 percent drop in net profit for the past year to March due to subprime-related losses, but company president Terunobu Maeda said that the worst is over.
($1 = 104.61 yen)
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