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Revised United States economic growth data will be a key trading cue for Tokyo investors this week, after the benchmark Nikkei-225 Index took a pounding over global growth fears.
The US Commerce Department publishes revised gross domestic product data for the April-June quarter on Thursday, after preliminary data showed the world's top economy expanded at an annualised rate of 2.3 per cent.
The data could be key to the Federal Reserve's timeline for raising interest rates.
Minutes from the Fed's meeting last month revealed policymakers want to see further improvement in the labour market and inflation before raising interest rates for the first time in nearly nine years.
"The GDP revision could offer fresh signs for the timing of an interest rate increase, since a rise in September is now uncertain," said Kenzaburo Suwa, a strategist at Okasan Securities.
Investors will be bracing for another slump after the Nikkei fell 2.98 per cent on Friday for its fourth day of losses to take it down 5.28 per cent on the week. It closed at 19,435.83 points, its lowest in three months.
The broader Topix index fell 3.13 per cent on Friday, taking the week's losses to 5.49 per cent.
"Now players are concerned about not just external factors such as the Greek crisis or a speculative sell-off in China, but a deterioration in the real global economy," Suwa said. "This will have a real impact on the Japanese economy for sure."
Investor jitters have risen on concerns that China's slowdown would drag on global growth, with currency traders moving into the yen, which is seen as a safe haven in times of turmoil and uncertainty.
Dealers said markets remained under pressure from uncertainty about China after the recent shock devaluation of the yuan added to fears the world's second-biggest economy is slowing more than thought.
Stoking concerns, an independent survey on Friday showed China's manufacturing activity slumped to a 77-month low. Falling oil prices also weighed on investor sentiment.
"The environment surrounding markets has changed with the Chinese economy slowing and commodity prices plunging," said Ryuta Otsuka, a strategist at Toyo Securities.


Tokyo investors to focus on US GDP data

A businessman is watching the Tokyo stock index as investors in Tokyo focus on the release of US GDP figures this week. Photo: EPA

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After Friday's sell-off on global growth fears, market waits for clearer picture on rates front


.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}After Friday's sell-off on global growth fears, market waits for clearer picture on rates front

After Friday's sell-off on global growth fears, market waits for clearer picture on rates front