Japan's Nikkei 225 Stock Average could lose its place in the coming week as this year's only major global index to rise in dollar terms.
Computer-related companies such as Kyocera Corp and Sony Corp. may slide on concern about slowing earnings growth among their US peers. Third-quarter profit at Standard & Poor's 500 companies will rise 11.2 percent, lower than the 16.6 percent forecast on July 1, according to Thomson First Call.
"For the next month, people are going to focus on potential earning warnings coming out of the US," said Marc Desmidt, who helps manage US$8.5 billion at Merrill Lynch Investment Managers Co.
"That's going to set the theme" in the market.
Desmidt said he likes companies such as Nissan Motor Corp, Ricoh Co, Canon Inc and Olympus Optical Co because they are still increasing their market shares.
South Korean stocks may rise on optimism that the government may encourage pension funds to buy shares.
Benchmark indexes may gain in Australia and Hong Kong as economic growth may be picking up. A government report is expected to show the Australian economy grew four times faster than the US in the second quarter. The Hong Kong government on Friday raised its 2002 growth forecast.
The Nikkei added 1.4 percent this year in US dollar terms, the only benchmark to gain among 18 major stock indexes in North America, Europe and Asia.
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