The expectations are prompting more expectations. The market is likely to stay solid for the time being because there are no factors to dash these hopes.
I expect the Nikkei to move in a boxed range of between around 15,000 and 15,500 for the time being.
People must have built up their expectations that Honda will deliver more, so that must have caused the selling.
Unlike disappointing earnings in the U.S., those in Japan do not look so bad. But investors are basically taking a wait-and-see attitude.
Technology stocks are playing catch-up to the rest of the market with some evidence that they've hit bottom.
It's only healthy to see some selling after the recent run- up. The industrial production report does raise the concern that the momentum of investors who had been buying Japan on growth prospects will slow.