Nikkei stays flat as investors await US data

Tokyo stocks closed marginally higher after recouping early losses on Wednesday (August 31st), but lingering concerns about the US economy saw investors take a cautious approach.

Although better-than-expected US consumer spending data gave the benchmark Nikkei index a boost earlier this week, sentiment was then hurt by the news that American consumer confidence had slumped to its worst level in two years.

Okasan Securities analyst Hirokazu Fujiki told AFP that many traders will await the release of more US economic data at the end of the week, despite the evidence of some late bargain-hunting activity on Wednesday.

"Many market players are on the sidelines ahead of key indicators," he said.

The analyst's comments were echoed by Yutaka Miura, senior technical analyst at Mizuho Securities, who told the news agency: "Investors will likely remain cautious ahead of upcoming macroeconomic indicators, which are expected to be poor."

In August, US consumer confidence fell to its lowest level since the recession of 2007 to 2009.

Key US manufacturing data is due to be published on Thursday, with the latest update on the national unemployment rate to follow on Friday.