Japanese stocks are expected to remain on a downward trend next week amid uncertainties over U.S. President Donald Trump's tariffs. This week, the benchmark Nikkei 225 stock index lost 268.33 points, or 0.72%, to 36,887.17.
Trump gave a one-month reprieve on 25% tariffs on imports from Mexico and Canada on Thursday. But the announcement failed to give a boost to U.S. stocks. On Friday, the Nikkei closed below 37,000 for the first time in six months.
"Market players will remain wary until a final decision is made on the size of tariffs and their targeted items," an official at a major Japanese securities house said.
Next week, the Nikkei is likely to move between 36,500 and 38,000, analysts and brokers have assessed
"The Nikkei is expected to remain under downward pressure next week due to tariffs and economic data that may suggest a slowdown in the U.S. economy," the official said.
"Even if data ease concerns about the U.S. economy's outlook, it is too early for concerns about tariffs to be wiped out," the official added.
A stronger yen against the dollar triggered by rising Japanese long-term interest rates is also expected to dampen sentiment among Tokyo stock market players.
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