TOKYO: Tokyo stocks are expected to fluctuate within a narrow range next week, with many market players seen adopting a wait-and-see mood before the corporate earnings release season in Japan.

This week, the Nikkei average of 225 selected issues listed on the first section of the Tokyo Stock Exchange climbed 405.61 points, or 1.82 percent, to end at 22,696.42.

The key index was buoyed by optimism over early development of a novel coronavirus vaccine, ignited by Moderna Inc.’s announcement that its potential coronavirus vaccine produced antibodies in all patients in an early-stage trial.

The Nikkei, however, failed to cross the 23,000 line, reflecting spikes in the numbers of coronavirus infection cases in Japan and the United States.

Next week, the Nikkei is expected to move mainly between 22,400 and 23,000, analysts and brokers said.

“The Tokyo market next week is expected to struggle for direction, ahead of earnings releases for April-June by Japanese companies in late July,” Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc., said.

Investors may move to sell their stocks before Japan’s four-day weekend, causing the Nikkei to fall, Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co., noted.

There will be only three trading days next week, with the Tokyo market closed on Thursday and July 24 for national holidays.

On the other hand, Ichikawa said, “The Nikkei may rise if there is any positive news related to coronavirus vaccine development.”

Some investors will also be focused on earnings releases by electronic parts maker Nidec and industrial robot producer Fanuc, he added.

JIJI Press