The Nikkei 225 was expected to open lower on 25 August, with declines in U.S. technology stocks and tariff concerns weighing on the market. Investors are focused on developments in U.S. markets and the release of various economic indicators.
The Nikkei 225 was expected to open lower in Tokyo on 25 August, weighed down by declines in U.S. technology stocks and caution over tariff policy. In the previous session in New York, the Dow extended its winning streak, while the Nasdaq Composite and SOX fell. Chicago Nikkei 225 futures stood at ¥65365, ¥75 below the Osaka Exchange settlement value, suggesting that selling could lead the market.
In U.S. markets, the Dow rose to ¥53417 for a third straight gain, while the technology-heavy Nasdaq fell by more than 200 points and the SOX Index plunged by more than 317 points, highlighting the divergent performance among the indexes. Market participants said that although funds were likely to flow toward economically sensitive stocks, the market environment made technology stocks susceptible to profit-taking.
Domestic factors include the release on the 25th of revised June coincident and leading composite index figures, with attention focused on how they will be reflected in the Cabinet Office's assessment of the economic trend. The Bank of Japan places importance on core-core CPI in addition to core CPI, making the figures a potential clue to the direction of monetary policy. The release of July sales figures for department stores nationwide and in the Tokyo area is also attracting market attention as an indicator of inbound demand and trends in the summer shopping season.
Overseas, Germany is scheduled to release its final GDP figure for the April-June quarter and its August Ifo Business Climate Index. Brazil is scheduled to release the FIPE Consumer Price Index and FGV Consumer Confidence Index. In the United States, the June S&P/CoreLogic Case-Shiller 20-City Home Price Index and FHFA House Price Index, July new home sales, and the August Consumer Confidence Index are scheduled to be released in succession. Trends in the housing market will provide clues to their potential impact on personal consumption and employment.
Market participants said expectations for measures to enhance corporate value remained strong domestically, but that the many uncertainties originating overseas would make it difficult for the market to actively pursue further gains. They also expect the session to be one in which investors seek direction while assessing the economic data.