Tokyo investors monitor Iraq war

Tokyo, Apr 06: Japanese shares are likely to move in a tight range this week as investors monitor the war in Iraq and the impact of a deadly virus in Asia while trying to figure out if a recent steep fall in bank stocks has run its course.
The market will also be focused on the Bank of Japan`s two-day policy-setting meeting starting on Monday, but analysts are not expecting any steps that might spark a rush into shares.

Policy is expected to be broadly confirmed, although the central bank may announce ways to get liquidity flowing around the financial system more efficiently.

"It is highly possible the BOJ will boost its outright buying of Japanese government bonds and the focus will be on whether it buys asset-backed commercial paper from smaller firms," said Takashi Miyazaki, a strategist at UFJ Partners Asset Management.

"But that is already factored in to the equities market and I don`t expect to see exchange-traded funds (ETFs) or real estate investment trusts (REIT) added to its portfolio. There will likely be nothing to spark buying in stocks," he said.

Some analysts are pinning hopes on advances by U.S.-led forces in Iraq to bolster market sentiment. News that U.S. troops had taken control of Baghdad`s international airport on Friday lifted the dollar and the Nikkei average near the close. Bureau Report