Nikkei Under Pressure from US Tariff Issues, Weak Yen Supports
Japanese stocks are likely to weaken on Friday due to uncertainty about the impact of US tariffs on corporate profits. Nikkei futures on the SGX fell 0.3% to 45,330, signaling pressure on the Japanese stock market.
However, the weakening yen provided some support. The USD/JPY exchange rate stood at 149.85, higher than Thursday's close of 148.83. A weaker yen typically benefits Japanese exporters as it increases the competitiveness of their products in the global market.
Investors are now focused on developments in the ruling Liberal Democratic Party (LDP) leadership election. The outcome is expected to significantly impact the direction of Japan's economic policy going forward.
The previous day, the Nikkei index had strengthened 0.3% to close at 45,754.93. However, global uncertainty, particularly regarding US tariff policy, has again weighed on sentiment and could trigger profit-taking in early trading. (ads)
Source: Bloomberg.com
