{"id":21183,"date":"2025-04-23T09:46:01","date_gmt":"2025-04-23T09:46:01","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=21183"},"modified":"2025-04-23T09:46:01","modified_gmt":"2025-04-23T09:46:01","slug":"nikkei-225-rallies-as-trump-softens-tariff-tone","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-latam\/analysis\/nikkei-225-rallies-as-trump-softens-tariff-tone\/","title":{"rendered":"Nikkei 225 Rallies as Trump Softens Tariff Tone"},"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-latam\/wp-content\/uploads\/sites\/23\/2026\/03\/indices9-1024x559.png\" alt=\"\" class=\"wp-image-16993\" \/><\/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 rose 1.89%<\/strong> to close at <strong>34,868.63<\/strong>, adding 648.03 points on Wednesday.<\/li>\n\n\n\n<li><strong>Trump backed off threats to remove Powell<\/strong>, and signalled willingness to ease tariffs.<\/li>\n\n\n\n<li><strong>Japan\u2019s Composite PMI rose to 51.1<\/strong> in April, returning to expansion for the first time in months.<\/li>\n\n\n\n<li><strong>IMF lowered Japan\u2019s 2025\u201326 growth forecast to 0.6%<\/strong>, citing tariff-related downside risks.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>Japanese stocks staged a strong rebound this week, supported by a mix of political relief and improving domestic fundamentals. The Nikkei 225 surged nearly 2% intraday, reaching a high of <strong>35,447.13<\/strong> before settling at <strong>35,054.13<\/strong>.<\/p>\n\n\n\n<p>Risk appetite returned after <strong><a href=\"https:\/\/t.co\/723BV7fPA8\">President Donald Trump reversed course on removing Fed Chair Jerome Powell<\/a><\/strong>, opting instead to push for more aggressive rate cuts. Traders also took note of Trump\u2019s remarks on trade, where he hinted that <strong>tariffs on Chinese imports could be \u201csubstantially\u201d lowered<\/strong>, lifting export-oriented equities across the region.<\/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\">The yen extends its advance past the psychological level of 140 against the dollar amid threats to the independence of the Federal Reserve, heightened risks concerning tariffs and ahead of a meeting between the finance chiefs of Japan and the US <a href=\"https:\/\/t.co\/xKpTt19okA\">https:\/\/t.co\/xKpTt19okA<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1914556127922040888?ref_src=twsrc%5Etfw\">April 22, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>In domestic data, <strong><a href=\"https:\/\/www.reuters.com\/business\/japans-factory-activity-shrinks-tariff-woes-services-perk-up-pmi-shows-2025-04-23\/\">Japan\u2019s April flash PMIs<\/a><\/strong> offered the strongest signal of economic stabilisation in months. The <strong>Composite Output Index climbed to 51.1<\/strong>, up from 48.9 in March. <strong>Services PMI led the gains<\/strong>, expanding at the fastest rate in three months, while <strong>manufacturing remained stable<\/strong>, helping reinforce the case for a broader recovery.<\/p>\n\n\n\n<p>That said, the <strong><a href=\"https:\/\/www.imf.org\/en\/Data\">International Monetary Fund tempered optimism<\/a><\/strong> by revising down Japan\u2019s GDP growth forecast to <strong>0.6% for both 2025 and 2026<\/strong>, citing U.S. tariff risks and slowing external demand.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The Nikkei 225 staged a <strong>strong bullish rally<\/strong>, climbing from the <strong>33814.13 low<\/strong> to a session high of <strong>35447.13<\/strong>, marking a <strong>1,600+ point run<\/strong> before facing a sharp correction. The price action hugged the <strong>5- and 10-period moving averages<\/strong> during the ascent, signaling persistent buying pressure.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-latam\/wp-content\/uploads\/sites\/23\/2026\/03\/image-27-1024x442.jpg\" alt=\"\" class=\"wp-image-21184\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: Nikkei pares gains after surging to 35,447, but buyers regroup as momentum starts to rebuild, as seen on the <\/em><em><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>After peaking, price experienced a swift pullback, but <strong>support at the 30-MA<\/strong> held firm around the <strong>34,660\u201334,700 zone<\/strong>. The <strong>MACD histogram<\/strong> shows waning bearish momentum, and the lines have begun to converge, hinting at a possible <strong>bullish crossover<\/strong> forming as the price pushes back toward <strong>35,050<\/strong>.<\/p>\n\n\n\n<p>If bulls maintain control above the <strong>30-MA<\/strong>, we could see a fresh retest of the <strong>35,450 resistance<\/strong>, with potential upside continuation. Failure to hold may invite consolidation between <strong>34,800\u201335,100<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Cautious Optimism Moving Forward<\/h2>\n\n\n\n<p>Despite the IMF\u2019s caution, sentiment has shifted in the short term. Traders are betting on a <strong>softer Fed<\/strong>, <strong>improving Japanese fundamentals<\/strong>, and a potential thaw in <strong>U.S.-China trade relations<\/strong>. If follow-through persists, the Nikkei may re-test the <strong>35,500 high<\/strong>, with potential to trend toward <strong>36,000<\/strong> in coming sessions.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and <\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login?_gl=1*1azgbap*_gcl_au*NjE5NTE3MjY4LjE3NDQ2MDA3NDI.*_ga*MTY4OTgwNTU5Mi4xNzM2NzQ2MTgy*_ga_J26NL1ZVX7*czE3NDQ5NDQ0NTYkbzEyMCRnMCR0MTc0NDk0NDQ1NiRqNjAkbDAkaDA.\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nikkei 225 gained ground on renewed trade optimism, softer rhetoric from U.S. leadership, and signs of stabilisation in Japan\u2019s private sector. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":2,"featured_media":16993,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[44],"tags":[57],"class_list":["post-21183","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-nikkei"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/posts\/21183","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/comments?post=21183"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/posts\/21183\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/media\/16993"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/media?parent=21183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/categories?post=21183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/tags?post=21183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}