Japanese stocks are expected to edge lower on the 24th, with investors likely to refrain from buying against a backdrop of declines in US semiconductor stocks and the breakdown of US-Canada tariff talks. Domestically, declines in semiconductor-related stocks are expected to weigh on the market, while automakers may also lose momentum.
According to a Bloomberg report, US semiconductor-related stocks were sold on Friday, and are expected to exert downward pressure on the Japanese market. The breakdown of US-Canada tariff talks is also seen as a factor prompting investors to hold back from aggressive buying.
Selling of semiconductor-related stocks is expected to continue in the domestic market, potentially weighing on the Nikkei, which has a high weighting in technology stocks. Some market views suggest that overseas developments could erode expectations for further gains.
With expectations for a reduction in US tariffs on Canada receding, automakers, which had previously benefited from support for further gains, may also trade weakly. Market participants are sounding a note of caution.
Hirakawa Shoji (平川昇二), chief global strategist at Tokai Tokyo Intelligence Lab, suggested that the burden on share prices could intensify in the current phase against a backdrop of waning appetite for stocks.