The market is waiting for a clue from the industrial output data.

Investors are waiting for the CPI data due Friday and until then, it would be difficult for them to build positions.

Things look unclear until such blue chips companies as high-tech and heavy machinery firms announce their earnings later this week.

The Nikkei could test the 16,000 level again as the scenario of an end to deflation is widely shared.

Investors were wary after the Nikkei's rapid rise, as it added 700 points (last week).

Rate-sensitive stocks, including real estate stocks, could be a focus a day after they were sold heavily.