Nikkei Potentially Weakens Following Japan's Ruling Coalition's Election Defeat
Japanese stock markets are expected to open lower after the ruling coalition suffered a defeat in the recent election. Uncertainty about the future direction of domestic policy has made investors anxious, impacting market sentiment. Nikkei futures on SGX opened at 39,800, down 40 points from Monday and 30 points from Friday. Japanese stocks were closed on Monday for a national holiday, and will return to business with a focus on reactions to the election results and global economic data.
In addition to domestic political factors, a strengthening yen is also weighing on the Japanese stock market outlook. The USD/JPY exchange rate fell to 147.45, from 148.76 at the Tokyo stock market close on Friday. A stronger yen tends to pressure exporter profits, which are the backbone of the Nikkei index. Meanwhile, global investors are also monitoring developments surrounding US tariff policy and preparing for the earnings season, which begins later this week. The Nikkei index itself closed down 0.2% to 39,819.11 last Friday.
Source: Newsmaker.id
