{"id":35080,"date":"2025-11-17T15:45:52","date_gmt":"2025-11-17T07:45:52","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=35080"},"modified":"2025-11-17T15:45:52","modified_gmt":"2025-11-17T07:45:52","slug":"nikkei-edges-lower-as-diplomatic-tensions-widen","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/analysis\/nikkei-edges-lower-as-diplomatic-tensions-widen\/","title":{"rendered":"Nikkei Edges Lower as Diplomatic Tensions Widen"},"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\/image_fx-86-1024x559.png\" alt=\"\" class=\"wp-image-20961\" \/><\/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> slipped <strong>0.1%<\/strong> to <strong>50,323.91<\/strong>, while the <strong>Topix<\/strong> fell <strong>0.37%<\/strong> to <strong>3,347.53<\/strong>.<\/li>\n\n\n\n<li>Retail and tourism-linked stocks plunged after China\u2019s travel advisory, while <strong>Tokyo Electron<\/strong> and <strong>SoftBank<\/strong> led tech gains.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>The <strong>Nikkei 225<\/strong> closed <strong>0.1% lower at 50,323.91<\/strong> on Monday, retreating from an early <strong>0.4% rise<\/strong>, as renewed political friction between <strong>Japan and China<\/strong> weighed on sentiment.<\/p>\n\n\n\n<p>China\u2019s foreign ministry issued a <strong>travel warning<\/strong> for Japan after tensions escalated over <strong>Taiwan<\/strong>, with Beijing cautioning Tokyo of a \u201ccrushing\u201d military defeat should Japan intervene militarily.<\/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\">Japan tourism-exposed stocks sink as China issues travel warning after Takaichi\u2019s Taiwan remarks <a href=\"https:\/\/t.co\/7u8XgQW8lQ\">https:\/\/t.co\/7u8XgQW8lQ<\/a><\/p>&mdash; CNBC (@CNBC) <a href=\"https:\/\/twitter.com\/CNBC\/status\/1990234013080928378?ref_src=twsrc%5Etfw\">November 17, 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 move marked another deterioration in bilateral ties after Japanese Prime Minister <strong>Sanae Takaichi<\/strong> said earlier this month that a Chinese attack on Taiwan would be a \u201csurvival-threatening situation\u201d for Japan.<\/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\">China is escalating its confrontation with Japan over Prime Minister Sanae Takaichi\u2019s comments on Taiwan, with state media threatening major countermeasures after Beijing\u2019s travel warnings raised the specter of economic retribution <a href=\"https:\/\/t.co\/NwmYdvyN7e\">https:\/\/t.co\/NwmYdvyN7e<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1990270266442760700?ref_src=twsrc%5Etfw\">November 17, 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 travel warning dealt a blow to Japan\u2019s tourism and retail sectors, both heavily reliant on <strong>Chinese visitors<\/strong> who account for a large share of inbound spending, particularly in cosmetics and apparel.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Retail and Tourism Stocks Hit Hard<\/h2>\n\n\n\n<p>Department store operators and consumer brands bore the brunt of the selloff. <strong>Isetan Mitsukoshi Holdings <\/strong>plunged <strong>11%<\/strong>, while <strong>Takashimaya<\/strong> lost <strong>6.18%<\/strong>. Cosmetics maker <strong>Shiseido<\/strong> fell <strong>9.08%<\/strong>, and Uniqlo brand owner <strong>Fast Retailing<\/strong> dropped <strong>5.29%<\/strong>, becoming the largest drag on the Nikkei.<\/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\">Shiseido shares fell after China cautioned its citizens against traveling to and studying in Japan amid a deepening diplomatic row between the nations <a href=\"https:\/\/t.co\/pdcxtfsCGy\">https:\/\/t.co\/pdcxtfsCGy<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1990219420434620760?ref_src=twsrc%5Etfw\">November 17, 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, some analysts said the selloff appeared overdone. <strong>Shoichi Arisawa<\/strong> of <strong>IwaiCosmo Securities<\/strong> remarked that \u201ctraders might have priced in all the bad news regarding Japan-China relations,\u201d suggesting that further declines in retail names may be limited.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Tech and Financial Stocks Cushion Losses<\/h2>\n\n\n\n<p>Gains in the technology and financial sectors helped offset broader weakness. <strong>Tokyo Electron <\/strong>advanced <strong>4.55%<\/strong>, supported by bargain-hunting in semiconductor names after last week\u2019s dip. <strong>SoftBank Group<\/strong> added <strong>2.83%<\/strong>, while <strong>Mitsui Kinzoku<\/strong> \u2014 a key supplier to AI data centres \u2014 surged <strong>8.87%<\/strong>.<\/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\">SoftBank shares plunge over 8%, extending selloff into third day <a href=\"https:\/\/t.co\/lTeywW0KLg\">https:\/\/t.co\/lTeywW0KLg<\/a><\/p>&mdash; CNBC (@CNBC) <a href=\"https:\/\/twitter.com\/CNBC\/status\/1989136899026391515?ref_src=twsrc%5Etfw\">November 14, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Among financials, <strong>Sumitomo Mitsui Financial Group<\/strong> climbed <strong>4.57%<\/strong> after reporting a <strong>57% jump<\/strong> in July\u2013September net profit on Friday. Meanwhile, <strong>Mitsubishi UFJ Financial Group <\/strong>and <strong>Mizuho Financial Group <\/strong>edged lower by <strong>1%<\/strong> and <strong>0.26%<\/strong>, respectively, despite posting solid earnings.<\/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 (Nikkei225)<\/strong> trades near <strong>50,358.65<\/strong>, down <strong>0.16%<\/strong>, consolidating below recent highs of <strong>52,669.15<\/strong>. On the <strong>daily chart<\/strong>, short-term moving averages (5, 10, 30) show a mild bearish crossover, hinting at cooling momentum after an extended rally.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/image-25-1024x459.jpg\" alt=\"\" class=\"wp-image-35081\" \/><\/figure>\n\n\n\n<p>The <strong>MACD<\/strong> indicator has softened, but remains above the zero line, suggesting the broader uptrend remains intact. Immediate support lies around <strong>50,000<\/strong>, with further downside toward <strong>48,800<\/strong> if selling deepens. Resistance is seen near <strong>51,200\u201351,500<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Cautious Forecast<\/h2>\n\n\n\n<p>While global tensions and weaker consumer sentiment could weigh on tourism-linked sectors in the short term, analysts expect dip-buying in technology and banking stocks to stabilise the Nikkei around the <strong>50,000 level<\/strong>.<\/p>\n\n\n\n<p>If diplomatic rhetoric cools and global risk appetite improves, the index could rebound toward <strong>51,500<\/strong>, though heightened volatility remains likely as traders monitor cross-strait developments and policy signals from Beijing.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Create your live VT Markets account<\/a> and <a href=\"https:\/\/myaccount.vtmarkets.com\/login?_gl=1*5vyjdn*_gcl_au*Njc1MzM0NjY0LjE3NTEzNTM4MTc.*_ga*MjA5ODA0NDIzNC4xNzI3OTE1ODQ1*_ga_J26NL1ZVX7*czE3NTE4NzkxMDYkbzMwOCRnMSR0MTc1MTg3OTExOCRqNDgkbDAkaDA.*_ga_6XQ8153GYW*czE3NTE4NzkxMDgkbzU3JGcxJHQxNzUxODc5MTE4JGo1MCRsMCRoMA..*_ga_BG6LYEHPX1*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMTgkajUwJGwwJGgw*_ga_J8BRGZSREX*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_7CG6454YR5*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_69Z54R4H9N*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_CY2VCKFC3C*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_TXZ07R2C21*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_17TMGY9BBE*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_MWDVVSEVL5*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_2QCC3S2748*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_E7D2PCX624*czE3NTE4NzkxMjYkbzUkZzAkdDE3NTE4NzkxMjYkajYwJGwwJGgw*_ga_XJ4037XKK6*czE3NTE4NzkxMjYkbzUkZzAkdDE3NTE4NzkxMjYkajYwJGwwJGgw*_ga_EJCVQDC7VT*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjYkajQyJGwwJGgw\" target=\"_blank\" rel=\"noopener\" title=\"\">start trading<\/a> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Japan\u2019s Nikkei 225 ended slightly lower on Monday as China\u2019s warning to citizens against travel to Japan hit retail and tourism shares. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":20961,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[11,30],"class_list":["post-35080","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-ca\/wp-json\/wp\/v2\/posts\/35080","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\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=35080"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/35080\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/20961"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=35080"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=35080"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=35080"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}