Japanese stocks are set to rise in this week as domestic data should bring some good news for the growth outlook and boost investor sentiment after the easing of US inflation jitters, analysts said Friday. They said foreign investors are likely to continue supporting the local bourse as they have already shrugged off data released earlier this month that Japan was in mild recession for most of 2004. Japan will release January industrial production data on Monday and January jobs and wage earners' household spending numbers on Tuesday.

The average economist forecast on industrial output in January is for a rise of 1.6 percent from the previous month after a 0.8 percent drop in December, while an official survey of manufacturers forecast a 2.8 percent gain.

Strong figures would support hopes for an economic recovery in the coming months, Toshio Sumitani, senior strategist at Tokai Tokyo Research Centre, said.

Some figures for January have already provided encouraging signs for the market.

Japan's nation-wide department store sales rose 0.9 percent in January from a year earlier, the first increase in 11 months, according to the Japan Department Stores Association.

The jobless rate in Japan is forecast by economists to stay at a six-year low of 4.4 percent in January after improving in December from 4.5 percent the previous month.

Foreign investor buying will continue as they have discounted data that the economy shrank for the third consecutive quarter in the December period, pushing Japan back into its fourth recession in a decade, analysts said.

For the coming week, Otsuka forecast the benchmark Nikkei-225 index should move between 11,500 and 11,800 and Sumitani projected it could hit a high of 11,900.

For the week to February 25, the Nikkei edged down 1.87 points or 0.02 percent to 11,658.25. The broader TOPIX index of all First Section shares was slightly up 0.76 points or 0.07 percent at 1,167.33.

Average daily volume was 1.42 billion shares, from 1.51 billion shares the previous week. Average daily turnover by value was 1.13 trillion yen (10.73 billion dollars), from 1.28 trillion yen.

Fujitsu was up six yen or 0.90 percent at 673 yen and NEC gained 16 yen or 2.45 percent to 670 yen. But Sony lost 20 yen or 0.50 percent to 3,960.

Toyota Motor fell 130 yen or 3.12 percent to 4,040 yen and Honda Motor lost 60 yen or 1.06 percent to 5,580 yen. Nissan Motor fell 22 yen or 1.95 percent to 1,109 yen.

Mizuho Financial Group lost 1,000 yen or 0.20 percent to 507,000 yen and Mitsubishi Tokyo Financial Group lost 21,000 yen or 2.18 percent to 942,000 yen. But Sumitomo Mitsui Financial Group was up 1,000 yen or 0.14 percent at 716,000 yen.

Copyright Agence France-Presse, 2005