{"id":47951,"date":"2025-11-25T04:38:56","date_gmt":"2025-11-25T04:38:56","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=32903"},"modified":"2025-11-25T04:38:56","modified_gmt":"2025-11-25T04:38:56","slug":"nikkei-rose-with-the-return-of-risk-appetite","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/nikkei-rose-with-the-return-of-risk-appetite\/","title":{"rendered":"Nikkei Rose With The Return Of Risk Appetite"},"content":{"rendered":"\n<p>Japan\u2019s Nikkei 225 advanced 0.8% in early Tuesday trading, clawing back part of last week\u2019s steep decline as investors shifted back into risk assets amid rising confidence that the Federal Reserve will cut interest rates at its December meeting.<\/p>\n\n\n\n<p>The uptick follows a choppy spell in which the index slid 3.5% last week on concerns over stretched valuations and global political tensions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\">Fed Rate Cut Bets Fuel Global Optimism<\/h2>\n\n\n\n<p>According to the CME FedWatch Tool, markets are now assigning an 85% likelihood to a 25-basis-point reduction in December.<\/p>\n\n\n\n<p>This repricing was prompted by&nbsp;<a href=\"https:\/\/www.reuters.com\/business\/feds-waller-december-cut-is-appropriate-action-january-more-uncertain-given-2025-11-24\/\" target=\"_blank\" rel=\"noreferrer noopener\">dovish comments from Fed Governor Christopher Waller<\/a>, who highlighted signs of softening in the labour market, and San Francisco Fed President Mary Daly, who expressed openness to easing next month.<\/p>\n\n\n\n<p>The yield on the US 10-year Treasury held near 4.03%, while the two-year yield hovered around 3.49%, pointing to steady interest-rate expectations.<\/p>\n\n\n\n<p>At the same time, the US Dollar Index (USDX) edged marginally lower to 100.2, bolstering sentiment across Asian trading.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\">Tech Stocks Lead The Charge<\/h2>\n\n\n\n<p>Technology names led the recovery, tracking a strong rally in the Nasdaq Composite, which jumped 2.69% on Monday, its strongest two-day run 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>Major players such as Advantest and SoftBank Group helped lift the Nikkei, echoing Wall Street\u2019s tech-driven surge.<\/p>\n\n\n\n<p>The MSCI Asia-Pacific ex-Japan Index climbed 1%, with Taiwan and South Korea posting solid advances as investors wager that looser monetary conditions will extend the AI-fuelled rally that has dominated markets throughout the year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\">Cautious Eye On Global Politics<\/h2>\n\n\n\n<p>Despite the improved mood, geopolitical issues remain a lingering concern.<\/p>\n\n\n\n<p>Tensions between Tokyo and Beijing continue to simmer after Prime Minister Sanae Takaichi\u2019s comments regarding Japan\u2019s potential military reaction to a crisis in Taiwan.<\/p>\n\n\n\n<p>Even so, indications of warmer US\u2013China relations, including&nbsp;<a href=\"https:\/\/www.bbc.com\/news\/articles\/ckgdr1vlz7ko\" target=\"_blank\" rel=\"noreferrer noopener\">President Donald Trump\u2019s scheduled visit to Beijing<\/a>&nbsp;in April, have helped ease some nerves.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The Nikkei 225 has bounced off recent lows around 48,600, finding interim support at its 50-day moving average.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2025\/11\/nikkei-25-nov.png\" alt=\"\" class=\"wp-image-32905\" \/><\/figure><\/div>\n\n\n<p>While the MACD indicator remains in negative territory, it is beginning to flatten, which could hint at stabilising momentum if buying interest persists.<\/p>\n\n\n\n<p>Resistance lies near 49,500, with initial support at 47,800. A sustained close above 49,800 may help reinstate a bullish tone heading into December.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\">Outlook<\/h2>\n\n\n\n<p>With expectations for a Fed rate cut firming and sentiment towards technology stocks improving, Asian equities, particularly in Japan, may enjoy some near-term upside.<\/p>\n\n\n\n<p>However, ongoing concerns over yen weakness, fiscal developments in Japan, and broader US\u2013China diplomatic dynamics could temper gains as the year draws to a close.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarketsmy.com\/trade-now\/\" target=\"_blank\" rel=\"noreferrer noopener\">Open your live VT Markets account&nbsp;<\/a><\/strong>and<strong><a href=\"https:\/\/myaccount.vtmarketsmy.com\/login\" target=\"_blank\" rel=\"noreferrer noopener\">&nbsp;begin trading today.<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Japan\u2019s Nikkei 225 advanced 0.8% in early Tuesday trading, clawing back part of last week\u2019s steep decline as investors shifted back into risk assets amid rising confidence that the Federal Reserve will cut interest rates at its December meeting. The uptick follows a choppy spell in which the index slid 3.5% last week on concerns <a href=\"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/nikkei-rose-with-the-return-of-risk-appetite\/\" class=\"read-more\">Continue Reading<\/a><\/p>\n","protected":false},"author":92,"featured_media":48074,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[],"class_list":["post-47951","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/47951","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\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=47951"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/47951\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/48074"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=47951"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=47951"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=47951"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}