TOKYO: Tokyo stocks are expected to be sensitive to economic indicators released in and outside Japan next week.

This week, the Nikkei average of 225 selected issues listed on the first section of the Tokyo Stock Exchange rose 33.29 points, or 0.15 pct, to close at 22,512.08 on Friday.

Although ending the seesaw week with gains, the market was constantly weighed on by fears over a second wave of coronavirus infections, notably in the United States, where states that opened earlier in the pandemic see the number of new cases surging again.

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

"It is equally likely for the Nikkei to rise or fall, depending on economic data for June," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co.

Closely watched announcements include China's manufacturing purchasing managers' index, due out on Tuesday, the Bank of Japan's "tankan" quarterly business sentiment survey results and the U.S. Institute for Supply Management's manufacturing index, both on Wednesday, and the U.S. Labor Department's employment report, on Thursday.

"If those indicators show a pick up in the pace of economic recovery, they will push the Nikkei up," said Maki Sawada, vice president of Nomura Securities Co.'s Investment Research & Investor Services Department.

Sawada noted that market players are specifically eager to see if the U.S. employment situation continued to improve in June, after the May report puzzled analysts by showing a nonfarm payroll increase of 2.5 million against a consensus estimate of a drop of 8 million.

On the other hand, dismal data would cause the Nikkei to plunge, market participants said.

"The Nikkei may even fall below 22,000 if the number of coronavirus infection cases goes sharply up in U.S. states other than those currently facing spikes in cases," Ichikawa added.

JIJI Press