Nikkei set to open lower as semiconductor stocks and tariffs weigh

Tokyo stocks are expected to open lower on August 25, with the Nikkei Stock Average facing pressure from weakness in semiconductor-related shares and uncertainty over U.S. tariff policy. Chicago Nikkei 225 Futures settled at 65,365 yen, 75 yen below the Osaka Exchange clearing price, signaling a weaker start. In New York on August 22, the Dow rose $140 to extend its winning streak, while the Nasdaq Composite and SOX index fell. The Dow closed at $53,417 for a third consecutive advance, supported by economic data indicating resilient growth and a decline in long-term U.S. interest rates that eased valuation concerns. The Nasdaq lost more than 200 points and the semiconductor-focused SOX index dropped more than 317 points, reflecting a rotation toward cyclical stocks and growing profit-taking in technology shares. The Nikkei had closed the previous Friday down 488 yen at 65,528 yen, making that level the key focus. Japan's corporate value-enhancement initiatives and active share buybacks remain downside-supportive factors, but U.S. tariff uncertainty and concerns about China's slowdown limit the market's upside. Investors will assess revised Japanese coincident and leading indexes, the Bank of Japan's core-core CPI gauge, department store sales, overseas economic data, U.S. housing indicators and consumer confidence for direction.

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