We’ve seen a change in the trend of foreigners’ investment stance on Japanese shares. It looks like a change in country allocation.

The yen’s pullback against the dollar appeared to prompt some investors to chase bargains in the high-technology sector. This helped lift the tech-heavy Nikkei index.

This helped lift the tech-heavy Nikkei index.

Speculation that some mutual funds here would pour 150 billion yen into equities also encouraged some speculators to buy shares in a thin trading session.

The outlook for the economy will become a focal point this week.

In contrast to the year-end rally here driven by real estate and other domestic plays, taking a lead now are stocks which have a high correlation with the Nasdaq market.

It’s not just the weakness in U.S. stocks this time. The dollar is falling (against major currencies) at the same time, and money is flowing out of the U.S..

The accounting problems in the U.S. seem to have crossed a significant hurdle on Wednesday, and the external pressures on the Japanese market in general have probably peaked.

Non-ferrous metal producers are buying targets, supported by strong earnings results.

Higher borrowing costs will lead to a shrinking housing market and a slowdown in the U.S. economy. Overseas investors, being concerned about the U.S. economic outlook, will pull their money out of the Japanese market.

Japan’s stock market may return to a bullish trend today, helped by U.S. jobs growth. Automakers such as Suzuki and Honda may be particularly strong on the back of the strengthening dollar.

The dollar gained some ground against the yen after Japan’s apparent intervention early this morning. That’s something that makes the market feel good.

The market is becoming very nervous about the earnings outlook for the tech sector after a string of bearish outlooks by tech giants such as Nortel and Sun Microsystems.

They have actively poured their money into blue-chip companies here such as Honda, Toyota, Matsushita Electric and Canon.

Local investors got a lift after data showed that foreign investors almost doubled their net purchases of stocks here last week.

It is understandable that foreigners want to take profits for now.

I think we’re in for another week of low volumes and directionless trade. Investors will continue to act cautiously until specifics of the package become clear.

Sentiment has turned a bit more bearish, so we’re likely to see indexes struggle.

The scenario of a double-dip recession in the United States has receded in recent weeks but the industrial production data show that Japan is looking very vulnerable should that view prove too optimistic,

The growth is clearly being driven by internal demand, and that means Japan is recovering on its own.

We’re starting to see some evidence of slowdown in the U.S., which is going to be a risk for us. The biggest concern is the oil price and foreign investors who have been buying Japan...

We’ll probably start the week lower. The jobs report was very strong.

I’m generally positive about the market outlook next year, too.

We’re starting to see some companies that are struggling significantly in the technology industry. With earnings being in focus this week, they may suffer selling.

Sony’s results led the market today. The surprisingly upbeat numbers gave the market its strong upward impetus, raising hopes for better-than-expected results from other companies.

I expect some volatile moves this week, especially with the steep drop in U.S. shares. Oil-related shares may get a boost on the back of higher commodities prices.