High oil prices seen capping Tokyo stocks

High oil prices and the prospect of a rise in US interest rates are expected to keep a lid on Japanese stocks this week, overshadowing a strong recovery by the economy and corporate earnings.
Big banks report annual earnings on Monday, with most expected to return to profit after aggressive campaigns to write off bad loans.
Bargain hunters scooped up stocks on a broad front last week after data showed Japan's economy grew at an annualised rate of 5.6 percent in the first quarter, much faster than expected.
That helped the Nikkei average rise 2.03 percent for the week - its first weekly gain in four weeks.
Still, many analysts said such gains were due mainly to a technical rebound after recent losses.
"The market's current concerns are high oil prices, instability on Wall Street and the currency market," said Yoshihiko Kosuga, deputy manager at Mizuho Investors Securities.
Oil prices, which have been hovering around record levels of more than $40 a barrel, are a particular concern. High oil prices could hurt earnings as well as dampen consumer spending.
The Organisation of Petroleum Exporting Countries (OPEC) said after informal talks in Amsterdam on Saturday that it was "deeply concerned" about high oil prices but said a decision on raising supplies would wait until a full meeting in Beirut on June 3.
US Treasury Secretary John Snow, host of a weekend meeting of G7 finance ministers and Russia, said on Friday that higher energy prices were a threat to global growth and that he would back a call by the G7 partners for increased oil output.
Analysts said there would be little impetus for the Tokyo market to rise unless Opec agreed an immediate rise in output.
Others said investors would be keen to buy banks and insurers if prices dipped because their businesses were mainly domestic and so less exposed to oil prices and Wall Street.
Traders expect the Nikkei to move between 10,500 and 11,500 this week. On Friday, it rose 1.92 percent to 11,070.25.
Industrial production data for April will be released on Friday, along with a swag of other data.
Economists are expecting a month-on-month rise of 3.9 percent, according to a Reuters survey, after a 0.6 percent rise in March, as exports stayed strong and demand for digital electronics looked to heat up ahead of the Olympics in August.