The Nikkei is expected to trade in the ¥53,000-57,000 range next week, while the risk of downside pressure could increase if oil prices exceed $80.
The Nikkei is expected to trade mainly in the ¥53,000-57,000 range the following week (9th-13th).
A potential expansion of military conflict in the Middle East has been cited as the market's main risk, with crude oil prices expected to clearly exceed $80 per barrel in some scenarios.
If oil prices continue to rise, this could affect the performance of resource-related stocks and overall supply-demand conditions, with potential implications for movements in the equity market.
However, the index could move in either direction depending on the extent of any escalation in the conflict, the responses of individual countries and trends in economic indicators.