Tokyo shares may stay weak

Japanese shares may stay under pressure in the coming week if US economic data and events to discuss the European sovereign debt problem fail to spur sentiment, brokers said. Finance ministers and central bankers from the Group of Seven industrialised countries are slated to start their meeting later Friday in France to discuss pressing issues such as the eurozone debt crisis.
"The market is watching whether the outcome of the G7 would give any changes to the European sovereign debt woes and the trend in the foreign exchange market," said Hiroichi Nishi, equity general manager at SMBC Nikko Securities.
"Without any such changes, Tokyo stocks would stay under pressure," Nishi said. "Meanwhile, the downside is seen to be limited as stock prices have fallen to relatively cheap levels to attract investors, thus likely sending the Nikkei to move in narrow ranges," Nishi said.
In the week to September 9, the Nikkei index at the Tokyo Stock Exchange fell 213.08 points or 2.38 percent to 8,737.66. The Topix index of all first-section shares lost 14.08 points or 1.83 percent to 755.70.
US economic data, such as retail sales in August to be released Wednesday, will be in focus after a bleak jobs report last week showed the struggling economy added no jobs in August, dealing a blow to global stock markets.
"The retail sales data needs close attention as the deteriorated employment situation and US fiscal problem (of prolonged debate over raising its debt ceiling) may have given impact on consumer spending," Nomura Securities said.
"If the figures come weaker than expected, the Federal Reserve is likely to step up discussions for additional easing measures," at its policy meeting later this month, Nomura said in a report. European finance ministers will hold an informal two-day meeting from Friday with the debt problem key on agenda, following the weekend G7.
"These events would not fundamentally resolve the problem but may give some indication of additional support to Greece," Nomura said.
Rekindled concern over the European sovereign debt problem bruised sentiment after the EU and IMF left a critical audit of Greek finances unfinished earlier this month as debt-ridden Greece admitted its deficit target was in trouble.