Tokyo stocks will likely be rangebound next week ahead of winter holidays as investors remain sceptical about the outlook for the eurozone's debt crisis and the global economy, dealers said. "Players were taking a sigh of relief after hearing about the result of the auction in Spain, and this positive momentum may stay alive next week," Yumi Nishimura, a broker at Daiwa Securities.
Despite the swirling eurozone debt crisis, Spain enjoyed a bumper bond sale on Thursday, raising nearly twice the amount targeted as it snatched the chance to lock in competitive borrowing rates.
"But fundamental factors - concerns over the eurozone and the uncertain outlook for the global economy - remain unchanged, while thin trading is expected ahead of Christmas and New Year holidays," Nishimura said.
"Considering these elements, I can say it's hard for most players to take positions," she added. "As the result, trading is expected to be rangebound."
On Friday, positive data on the US jobs market also helped boost market sentiment.
But "it's hard to trade", Yoshihito Okumura, general manager at Chibagin Asset Management, told Dow Jones Newswires.
"Since concerns continue over European sovereign debt problems for the mid- to long-term, the market can't be risk-on even if the US economic indicators are strong," Okumura said.
In the week to December 16, the benchmark Nikkei 225 index at the Tokyo Stock Exchange lost 1.58 percent, or 134.74 points, to 8,536.46. The Topix index of all first-section issues fell 1.97 percent, or 14.56 points, to 723.56.
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