Nikkei index may fall, yen rebound sparks cautious sentiment on corporate profits

The Japanese stock market may decline as worries about the impact of the recent strengthening of the Japanese yen on corporate profitability increase. Nikkei futures fell 0.5% on the Singapore Exchange to 52,715 points. The dollar was trading at 154.20 yen, slightly down from 154.21 yen at the close of the Tokyo stock market on Monday. Investors are closely monitoring comments from government officials on the yen, as well as the details of Prime Minister Takaichi Soanae's economic plan, with the upcoming elections in early February. The Nikkei index fell 1.8% on Monday to 52,885.25 points.