TOKYO: Tokyo stocks are expected to be range-bound next week, with the market trapped by economic recovery hopes and coronavirus resurgence fears.

This week, the Nikkei average of 225 selected issues listed on the first section of the Tokyo Stock Exchange rose 173.31 points, or 0.78 pct, to close at 22,478.79 on Friday.

The Nikkei skyrocketed more than 1,000 points on Tuesday, in the wake of the U.S. Federal Reserve's announcement that it will buy "a broad and diversified portfolio of corporate bonds" and media reports about a 1-trillion-dollar infrastructure spending plan by the administration of President Donald Trump. But the key index shed most of the gains as fears over a second wave of coronavirus outbreaks were heightened by rises in the infection counts in Beijing and some U.S. states.

Next week, the Nikkei is expected to move mainly between 22,000 and 23,000 analysts and brokers said.

"The Nikkei is expected to be in a state of deadlock next week, reflecting an absence of potentially market-moving events," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co.

"The Nikkei will likely move within a narrow range above 22,000 as it is expected to face a tug-of-war between hopes for a global economic recovery and fears over a second coronavirus wave," said Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc.

Meanwhile, Maki Sawada, vice president of Nomura Securities Co.'s Investment Research & Investor Services Department, warned that the benchmark index may fall below 22,000 if a further spread of the novel coronavirus in the United States is reported.

On the other hand, many market players said the Nikkei would jump if U.S. and European economic recoveries are suggested by Tuesday's IHS Markit manufacturing purchasing managers indexes for June and Wednesday's business climate index of Germany's Ifo Institute for the same month.

JIJI Press