U.K. Economy Grows a More-Than-Estimated 0.7%

AFP (23/8) -- Tokyo investors expect trading to remain cautious next week, ahead of the US Federal Reserve's September meeting and Japan's decision on whether to go ahead with its planned sales tax hike.In the week to August 23, the benchmark Nikkei index rose 0.08 percent, or 10.44 points, to 13,660.55, while the Topix index of all first-section shares fell 0.09 percent, or 1.02 points, to 1,141.63.'Trading is expected to be rangebound next week as players are likely to remain cautious, focusing on the fate of the QE (quantitative easing) programme,' said Kenzaburo Suwa, strategist with Okasan Securities.Dealers are looking for more evidence that the Federal Reserve is ready to pull back on its massive stimulus plan, ahead of its September 17-18 meeting after minutes from the Fed's last policy meeting gave no clarity on the bank's stance.Players will also focus on a revision of Japan's GDP,' as a key factor before Prime Minister Shinzo Abe decides whether or not to approve plans to raise consumption tax in April next year, Suwa added.The Japanese government will announce revised figures for the three months to June on September 9 after its preliminary data showed its economy grew 0.6 percent from the previous quarter.'Market participants should also focus on other economic indicators to be released next week,' including a revision of US GDP for the three months to June as well as Japan's inflation and jobless figures for July, said Hikaru Sato, senior analyst with Daiwa Securities.On Friday, Tokyo stocks surged by as much as 3.06 percent at one point as the dollar bounced back against the yen, boosting exporters.Stocks should benefit primarily from a rebound in the dollar,' said SMBC Nikko Securities general manager of equities Hiroichi Nishi.Tachibana Securities market analyst Kenichi Hirano said: 'The dollar is finally normalising, so to speak, after recent rises in US Treasury yields, which is exerting the normal reflexive effect on stocks, especially exporters.Otherwise, traders said little is expected from a market still lacking trading incentives before data and announcements slated for September, such as decisions on Tokyo's bid to host the 2020 Olympics and sales tax.The dollar was at 99.03 yen in afternoon Asian trade Friday, up from 98.68 yen in New York Thursday afternoon and 98.21 yen in Tokyo Thursday.The euro bought $1.3338 and 132.05 yen, compared with $1.3354 and 131.80 yen in US trade.The Dow Jones Industrial Average closed up 0.44 percent at 14,963.74 on Thursday despite a three-hour shutdown of the Nasdaq market due to a technical glitch.In Tokyo trade, Sony jumped 3.14 percent to 1,966 yen, while Toyota surged 2.80 percent to 6,220 yen.Tokyo Electric Power continued to slide, falling 4.86 percent to 508 yen after the Fukushima operator said 300 tonnes of radioactive water is believed to have leaked from a tank at the stricken plant.