Thursday, March 21, 2013
STOCK FOCUS: Nikkei May Top 13,000 In April
TOKYO (NQN)--Wall Street performed solidly overnight and Japanese stocks are holding firm Thursday amid easing concerns about the euro zone's bailout plan for Cyprus.
The benchmark Nikkei Stock Average is expected to continue trending higher for the time being and may top 13,000 in April.
Attention should be placed on trading activity among foreign investors, who were net buyers of Japanese stocks for the 17th straight week for the first week of March.
Around the time that Prime Minister Junichiro Koizumi dissolved the lower house in 2005 after bills related to postal reform were voted down in the upper chamber of the Diet, foreign investors were net buyers of Japanese stocks for 26 consecutive weeks. If net buying by overseas players continues on a similar path, it could be said that the Nikkei average still has room to rise.
Meanwhile, if momentum among foreigners is interrupted, stock selling may surge.
-- Translated from market commentary by Soichiro Tsutsumi, vice president at eWarrant Japan Securities KK