{"id":35342,"date":"2025-11-25T12:10:55","date_gmt":"2025-11-25T04:10:55","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=35342"},"modified":"2025-11-25T12:10:55","modified_gmt":"2025-11-25T04:10:55","slug":"nikkei-rebounds-as-risk-appetite-returns","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/nikkei-rebounds-as-risk-appetite-returns\/","title":{"rendered":"Nikkei Rebounds as Risk Appetite Returns"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/indices8-1024x559.png\" alt=\"\" class=\"wp-image-16992\" \/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Nikkei 225<\/strong> jumped <strong>0.8%<\/strong> in early trade after a <strong>3.5% decline<\/strong> last week.<\/li>\n\n\n\n<li><strong>Fed cut odds<\/strong> surged to <strong>85.1%<\/strong> from <strong>42.4%<\/strong> a week ago.<\/li>\n\n\n\n<li><strong>Nasdaq<\/strong> posted its biggest daily rise since May, up <strong>2.69%<\/strong>, driving global tech optimism.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>Japan\u2019s <strong>Nikkei 225<\/strong> rose 0.8% in early Tuesday trading, recovering some of last week\u2019s sharp losses as investors rotated back into risk assets amid growing conviction that the <strong>Federal Reserve<\/strong> will lower interest rates at its December meeting.<\/p>\n\n\n\n<p>The rally comes after a volatile period that saw the Nikkei drop <strong>3.5%<\/strong> last week on valuation fears and geopolitical tensions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Fed Rate Cut Bets Fuel Global Optimism<\/h2>\n\n\n\n<p>Markets are now pricing an <strong>85% probability<\/strong> of a <strong>25-basis-point cut<\/strong> in December, according to the <strong>CME FedWatch Tool<\/strong>.<\/p>\n\n\n\n<p>The shift was driven by dovish remarks from <strong>Fed Governor Christopher Waller<\/strong>, who noted signs of labour market weakness, and <strong>San Francisco Fed President Mary Daly<\/strong>, who voiced support for easing next month.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Fed&#39;s Waller: December cut appropriate, but January action more uncertain <a href=\"https:\/\/t.co\/OVwKTxMp7R\">https:\/\/t.co\/OVwKTxMp7R<\/a> <a href=\"https:\/\/t.co\/OVwKTxMp7R\">https:\/\/t.co\/OVwKTxMp7R<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1993107534723375324?ref_src=twsrc%5Etfw\">November 25, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The US <strong>10-year Treasury yield<\/strong> held steady at <strong>4.03%<\/strong>, while the <strong>2-year yield<\/strong> hovered at <strong>3.49%<\/strong>, reflecting stable rate expectations.<\/p>\n\n\n\n<p>Meanwhile, the <strong>US dollar index (USDX)<\/strong> edged slightly lower to <strong>100.2<\/strong>, supporting sentiment across Asian markets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Tech Stocks Lead the Charge<\/h2>\n\n\n\n<p>The rebound was most pronounced in <strong>technology stocks<\/strong>, following a surge in the <strong>Nasdaq Composite<\/strong>, which climbed <strong>2.69%<\/strong> on Monday \u2014 its best two-day gain since November 2024.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Nasdaq sees biggest jump in 6 months, Alphabet and Tesla lead tech rally<a href=\"https:\/\/twitter.com\/search?q=%24IXIC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$IXIC<\/a>: +2.69%<a href=\"https:\/\/twitter.com\/search?q=%24GOOGL&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$GOOGL<\/a>: +6.31%<a href=\"https:\/\/twitter.com\/search?q=%24TSLA&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$TSLA<\/a>: +6.82% <a href=\"https:\/\/t.co\/nNK84ddfZx\">pic.twitter.com\/nNK84ddfZx<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/1993074232566153344?ref_src=twsrc%5Etfw\">November 24, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Heavyweights such as <strong>Advantest<\/strong> and <strong>SoftBank Group<\/strong> helped lift the Nikkei, mirroring Wall Street\u2019s tech-led momentum.<\/p>\n\n\n\n<p>The <strong>MSCI Asia-Pacific ex-Japan Index<\/strong> rose <strong>1%<\/strong>, with <strong>Taiwan<\/strong> and <strong>South Korea<\/strong> also seeing strong gains as investors bet that easing monetary conditions will sustain the <strong>AI-driven rally<\/strong> that has dominated markets this year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Cautious Eye on Global Politics<\/h2>\n\n\n\n<p>Despite the upbeat sentiment, investors remain wary of geopolitical risks.<\/p>\n\n\n\n<p>Tensions between <strong>Tokyo and Beijing<\/strong> persist after Prime Minister <strong>Sanae Takaichi\u2019s<\/strong> remarks about Japan\u2019s potential military response to a Taiwan crisis.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">In a letter to the UN, Japan criticized an earlier missive from China as misrepresenting the nature of remarks PM Sanae Takaichi made on Taiwan, saying Beijing\u2019s letter was \u201cinconsistent with the facts and unsubstantiated\u201d <a href=\"https:\/\/t.co\/xLcrxt9RqD\">https:\/\/t.co\/xLcrxt9RqD<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1993144184593641759?ref_src=twsrc%5Etfw\">November 25, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>However, signs of improved <strong>US-China relations<\/strong>, including President <strong>Donald Trump\u2019s<\/strong> planned visit to Beijing in April, provided some relief.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The <strong>Nikkei 225<\/strong> has rebounded from recent lows near <strong>48,600<\/strong>, finding temporary support along its <strong>50-day moving average.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"468\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image-31-1024x468.png\" alt=\"\" class=\"wp-image-35343\" \/><\/figure>\n\n\n\n<p>The <strong>MACD<\/strong> indicator remains negative but shows early signs of flattening, a potential precursor to momentum stabilisation if follow-through buying continues.<\/p>\n\n\n\n<p>Resistance sits near <strong>49,500<\/strong>, while <strong>47,800<\/strong> serves as immediate support. A sustained close above <strong>49,800<\/strong> could restore bullish sentiment heading into December.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Outlook<\/h2>\n\n\n\n<p>With Fed expectations shifting decisively toward a rate cut and tech sentiment rebounding, <strong>Asian equities,<\/strong> particularly Japan, could see short-term upside.<\/p>\n\n\n\n<p>However, continued caution over <strong><a href=\"https:\/\/t.co\/iYh08rwBJd\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\">yen weakness<\/a><\/strong>, <strong>Japan\u2019s fiscal policy<\/strong>, and <strong>US-China diplomacy<\/strong> may limit gains ahead of year-end.<\/p>\n\n\n\n<p><strong>Learn more about trading <a href=\"http:\/\/www.vtmarkets.com\/indices\">Indices<\/a> on <a href=\"http:\/\/www.vtmarkets.com\/trade-now\">VT Markets<\/a> today.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Asian equities surged on Tuesday as rising expectations of a Federal Reserve rate cut in December revived risk appetite and boosted global tech shares. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":16992,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[11,30],"class_list":["post-35342","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-indices","tag-nikkei"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/35342","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=35342"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/35342\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16992"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=35342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=35342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=35342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}