{"id":19936,"date":"2025-04-04T07:07:26","date_gmt":"2025-04-04T07:07:26","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=19936"},"modified":"2025-04-04T07:07:26","modified_gmt":"2025-04-04T07:07:26","slug":"nikkei-225-declines-sharply-amid-global-trade-fears","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/analysis\/nikkei-225-declines-sharply-amid-global-trade-fears\/","title":{"rendered":"Nikkei 225 Declines Sharply Amid Global Trade Fears"},"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-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/yen8-1024x559.png\" alt=\"\" class=\"wp-image-17046\" \/><\/figure>\n\n\n\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Nikkei 225 index drops <strong>3.75<\/strong>%, reaching <strong>33,335.54<\/strong>.<\/li>\n\n\n\n<li>The Nikkei 225 index faces its <strong>steepest weekly loss in five years<\/strong>.<\/li>\n\n\n\n<li>Market sentiment remains fragile as global trade tensions continue to rise.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Nikkei 225 Drops Sharply Following U.S. Tariff Announcement<\/h2>\n\n\n\n<p>The Nikkei 225 index continued its decline on Thursday, closing at <strong>33,335.54<\/strong>, down <strong>3.75<\/strong>% for the day. This is part of a broader trend, with the index on track for its <strong>sharpest weekly drop in five years<\/strong>, reflecting <strong>increasing fears of a global recession<\/strong> triggered by U.S. President Donald Trump&#8217;s <a href=\"https:\/\/www.msn.com\/en-gb\/money\/other\/trump-tariffs-live-president-says-starmer-very-happy-with-uk-s-tariff-after-asian-markets-plunge-again\/ar-AA1BYHlN?ocid=BingNewsSerp\">latest trade tariffs<\/a>.<\/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\">After President Trump&#39;s tariff announcement, global markets fell as worries about a recession grew. Vicky Pryce from the Centre for Business and Economic Research told Reuters that those concerns were justified <a href=\"https:\/\/t.co\/byNi7gr73P\">pic.twitter.com\/byNi7gr73P<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1907775088163803605?ref_src=twsrc%5Etfw\">April 3, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Trump\u2019s Tariffs Weigh on Market Sentiment<\/h2>\n\n\n\n<p>The market response came after President Trump\u2019s announcement of new tariffs on all imports to the U.S., including a <strong><a href=\"https:\/\/www.wsj.com\/livecoverage\/trump-tariffs-trade-war-stock-market-04-02-2025\/card\/trump-imposes-10-baseline-tariff-rate-on-all-imports-and-higher-rates-for-some-nations-KZhKp0GZk1WdNCpgTti9?msockid=29a6bfa98333685431b8aa23829a697d\">10% baseline tariff<\/a> with higher rates on specific countries<\/strong>. The move sent ripples through global markets, further exacerbating fears of an economic slowdown. As global trade tensions heighten, Market participants are flocking to safe-haven assets such as gold and the yen, further increasing downward pressure on Japanese stocks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Banking Sector Takes a Hit<\/h2>\n\n\n\n<p>The banking sector, a significant component of the Nikkei 225, suffered the most significant losses, with shares down by 11%. Mitsubishi UFJ Financial Group saw a substantial drop of 11.6%, its largest single-day decline since August 5. The Bank of Japan may now be forced to delay any potential interest rate hikes, adding to the sector&#8217;s woes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Outlook<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"446\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/1-1-1024x446.jpg\" alt=\"\" class=\"wp-image-19949\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: Nikkei 225 tests support at 33,343 after a steep decline from 34,446, as seen on the\u00a0<a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p>Nikkei 225 declined by <strong>3.75<\/strong>%, closing at <strong>33,335.54 <\/strong>after opening at <strong>34,636<\/strong>. The session saw a sharp drop, reaching a low of <strong>33,255.54 <\/strong>before slightly retracing to close near <strong>33,335<\/strong>.<\/p>\n\n\n\n<p>The moving averages (MA 5,10,30) suggest bearish momentum, with short-term MAs below the longer-term moving averages. This crossover indicates that the downward price movement may persist. The MACD (12,26,9) is also reflecting the bearish sentiment, with the histogram showing an increasing amount of negative momentum, and the MACD line (blue) remains below the signal line (yellow).<\/p>\n\n\n\n<p>Key levels to monitor include <strong>33,343 <\/strong>as immediate support and <strong>34,446 <\/strong>as resistance. A break below support could signal further downside momentum, while a rally above resistance could shift the sentiment to a more neutral or bullish stance.<\/p>\n\n\n\n<p>With the possibility of a prolonged trade war and slow economic growth, market participants remain cautious. <strong>Nikkei 225<\/strong> traders are closely monitoring any new developments, as the broader impact of tariffs continues to unfold.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong>&nbsp;and&nbsp;<\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a><\/strong><strong>&nbsp;now.<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.vtmarkets.com\/#facebook\" rel=\"noreferrer noopener\" target=\"_blank\"><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.vtmarkets.com\/#facebook\" rel=\"noreferrer noopener\" target=\"_blank\"><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.vtmarkets.com\/#facebook\" rel=\"noreferrer noopener\" target=\"_blank\"><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.vtmarkets.com\/#facebook\" rel=\"noreferrer noopener\" target=\"_blank\"><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.vtmarkets.com\/#facebook\" rel=\"noreferrer noopener\" target=\"_blank\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nikkei 225 drops 3.75% amid U.S. tariff fears, reaching a low of 33,255.54. The Japanese index is on track for its worst weekly loss in five years as global recession concerns grow.<\/p>\n","protected":false},"author":66,"featured_media":17046,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[11,30,45],"class_list":["post-19936","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-indices","tag-nikkei","tag-yen"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/19936","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=19936"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/19936\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17046"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=19936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=19936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=19936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}