"The news of Greece forming the coalition is good news, but the euro debate will likely continue. The market will likely remain cautious and stick close to Friday's range," said Yumi Nishimura, senior technical analyst at Daiwa Securities.
The Nikkei is likely to trade in a range of 8,700 to 8,850
on Monday, strategists said.
Futures prices indicate the Nikkei could come under pressure. Nikkei futures in Chicago ended at 8,735, down 65 points from their Osaka close of 8,800. .
Orders for Japanese stocks placed through nine foreign securities houses before the start of trade showed that brokers were set to buy a net 1.7 million shares. Buy orders came to 20 million and sell orders totalled 18.3 million.
On Friday, the Nikkei average added 1.9 percent to finish at 8,801.40, bringing its weekly loss to 2.8 percent. The broader Topix index gained 1.8 percent to 752.02, falling 2.5 percent for the week.
STOCKS TO WATCH
- Sony
Standard & Poor's placed its 'A-' long-term ratings on Sony Corp on CreditWatch with negative implications, as the ratings agency believes that the likelihood of Sony's sluggish earnings persisting has increased, given an increasingly difficult earnings environment for the company's core flat panel TV
business.
- Takeda Pharmaceutical
Takeda Pharmaceutical Co posted a 17 percent fall in second-quarter operating profit, hurt by currency losses and worries over calls for new warnings on its top-selling diabetes pill Actos. Japan's top drugmaker also slashed its full-year outlook by more than 30 percent to take into account changes in foreign exchange rate forecasts and its $13.7 billion purchase of Swiss drugmaker Nycomed earlier this year.
- Toyota
Toyota Motor Corp.'s domestic production is being paralyzed by the parts shortage caused by the severe flooding in Thailand, with assembly lines for 20 models to grind to a halt, the business daily Nikkei reported. The automaker stopped churning out four minivan models, including the Alphard and Noah, at
Japanese factories last Wednesday. It will add 16 models to the list due to disrupted supplies of such parts as electronic components for audio equipment and meters, the Nikkei said.
- Yamada Denki
Electronics retailer Yamada Denki Co is expected to report a roughly 30 percent year-on-year jump in consolidated pretax profit to about 70 billion yen for the April-September period, a first-half record, the Nikkei reported. An earlier projection called for a 16 percent rise to 62.5 billion yen.
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