Tokyo investors eye Christmas sales

Tokyo - Tokyo investors will be keeping an eye on US holiday retail sales and movements on Wall Street next week, while possible European Central Bank easing will also be in focus, analysts said Friday.

"On the back of stable growth and a low interest rate environment, the Dow (Jones Industrial Average) is likely to gradually rise," Daiwa Securities said in a client note.

Investors will also be eyeing holiday shopping figures from the US National Retail Federation and the International Council of Shopping Centers, it added.

Lower gas prices and bumper share prices could put shoppers in the spending spirit, but cold weather might drive online purchases instead of sales at bricks-and-mortar shops, Daiwa said.

On Friday, the benchmark Nikkei 225 index at the Tokyo Stock Exchange finished up 1.23%, or 211.35 points, at 17 459.85. It gained 0.59% over the week.

The Topix index of all first-section shares climbed 1.32%, or 18.44 points, to 1 410.34, marking a weekly rise of 0.73%.

Record closes on Wall Street and a weak yen have boosted the Tokyo market, while investors also cheered Opec's decision not to cut oil production.

In forex markets, the dollar firmed to ¥118.22 from ¥117.74 in London.

"Exporters are benefiting from the higher dollar, (and) the market may be ready to test the 17 500 level soon after two straight days of consolidation, which has helped to cool off the somewhat overheated market," said Chibagin Asset Management general manager Yoshihiro Okumura.

"Meanwhile, Opec's decision to hold its production levels should keep crude prices low, which will enhance corporate profits," he told Dow Jones Newswires.

Oil prices extended their losses in Asian trade after the Organization of the Petroleum Exporting Countries, which pumps out a third of the world's oil, opted to stick by its output target, even after rates have plunged by 35% since June.

The prospect of low oil prices sent Japan Airlines and domestic rival All Nippon Airways (ANA) surging - fuel costs tend to be a carrier's single-biggest cost.

JAL rose 5.28% to ¥3 490 while rival ANA jumped 7.39% to ¥292.2.

Auto giant Toyota rose 2.34% to ¥7 314.0 and Sony was 4.0% higher at ¥2 600.0.

Dealers appeared to largely shrug off a string of lacklustre Japanese economic data published Friday morning with the October inflation rate hitting a year low and household spending falling again.

Meanwhile, recent weak data in Europe is boosting hopes for more easing measures by the ECB after its policy meeting next week, Daiwa said.