{"id":31642,"date":"2025-10-07T06:24:05","date_gmt":"2025-10-07T06:24:05","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=31642"},"modified":"2025-10-07T06:24:05","modified_gmt":"2025-10-07T06:24:05","slug":"nikkei-retreats-to-global-political-upheaval","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/sv-eu\/analysis\/nikkei-retreats-to-global-political-upheaval\/","title":{"rendered":"Nikkei Retreats to Global Political Upheaval"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/sv\/wp-content\/uploads\/sites\/10\/2025\/04\/image_fx-86-1024x559.png\" alt=\"\" class=\"wp-image-20961\" srcset=\"https:\/\/www.vtmarkets.com\/sv-eu\/wp-content\/uploads\/sites\/10\/2025\/04\/image_fx-86-1024x559.png 1024w, https:\/\/www.vtmarkets.com\/sv-eu\/wp-content\/uploads\/sites\/10\/2025\/04\/image_fx-86-300x164.png 300w, https:\/\/www.vtmarkets.com\/sv-eu\/wp-content\/uploads\/sites\/10\/2025\/04\/image_fx-86-768x419.png 768w, https:\/\/www.vtmarkets.com\/sv-eu\/wp-content\/uploads\/sites\/10\/2025\/04\/image_fx-86.png 1408w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Nikkei 225 fell 450 points to 48,090.65 after early gains on fiscal optimism faded.<\/li>\n\n\n\n<li>Yen weakened near 150 per dollar as traders priced in loose fiscal and monetary policy.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>Asian equities opened cautiously on Tuesday, with Japan\u2019s Nikkei 225 giving back early gains to close 0.93% lower at 48,090.65, following two days of strong rallies.<\/p>\n\n\n\n<p>Traders took profit after the index\u2019s record-breaking run, fuelled initially by <a href=\"https:\/\/t.co\/7o6yX79XQW\" target=\"_blank\" rel=\"noopener\" title=\"\">optimism surrounding the election of fiscal dove Sanae Takaichi<\/a> as the new leader of Japan\u2019s ruling party.<\/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 Nikkei hit a record as investors bet likely incoming prime minister Sanae Takaichi will ramp up fiscal stimulus, while in France, borrowing costs rose again after Prime Minister S\u00e9bastien Lecornu resigned. More on Market Rundown <a href=\"https:\/\/t.co\/pGsYhtlvDg\">https:\/\/t.co\/pGsYhtlvDg<\/a> <a href=\"https:\/\/t.co\/QLxpZNgFgL\">pic.twitter.com\/QLxpZNgFgL<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1975176714478088465?ref_src=twsrc%5Etfw\">October 6, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Takaichi\u2019s expected appointment as prime minister has strengthened expectations of aggressive fiscal stimulus and continued ultra-loose monetary policy. The yen weakened further, hovering near <strong>\u00a5150 per dollar<\/strong>, while Japanese government bond yields climbed as <a href=\"https:\/\/t.co\/e9lI8EXiEe\" target=\"_blank\" rel=\"noopener\" title=\"\">traders sold long-dated debt<\/a> amid the prospect of heavier issuance to fund spending plans.<\/p>\n\n\n\n<p>A smooth auction of <strong>\u00a5536.8 billion ($3.57 billion)<\/strong> in 30-year JGBs helped stabilise markets, though the steepening yield curve underscored investor caution.<\/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\u2019s 30-year government bond auction drew a stronger demand ratio than its 12-month average, easing investor concerns following the surprise victory of pro-stimulus conservative Takaichi in the ruling party leadership race <a href=\"https:\/\/t.co\/ZhKNY1waK1\">https:\/\/t.co\/ZhKNY1waK1<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1975408448155046348?ref_src=twsrc%5Etfw\">October 7, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Finance Minister <strong>Katsunobu Kato<\/strong> reaffirmed the government\u2019s vigilance against \u201cvolatile movements\u201d in the currency market, signalling possible intervention if yen weakness accelerates.<\/p>\n\n\n\n<p>Across Europe, political risk also dominated headlines. The surprise resignation of <strong>Sebastien Lecornu<\/strong> as France\u2019s prime minister deepened political turmoil in Paris and pushed French OAT futures lower, while the <strong>euro slipped 0.14% to $1.1696<\/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\">French Prime Minister Sebastien Lecornu unexpectedly resigns only hours after naming his cabinet, in a major deepening of France&#39;s political crisis that drove stocks and the euro sharply lower <a href=\"https:\/\/t.co\/NfGtbRhsuB\">https:\/\/t.co\/NfGtbRhsuB<\/a> <a href=\"https:\/\/t.co\/a6r4GE0oTF\">pic.twitter.com\/a6r4GE0oTF<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1975228303645737090?ref_src=twsrc%5Etfw\">October 6, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Analysts at Macquarie noted that President <strong>Emmanuel Macron<\/strong> could face <a href=\"https:\/\/t.co\/5lZh9fPJTX\" target=\"_blank\" rel=\"noopener\" title=\"\">growing pressure<\/a> to dissolve the National Assembly if coalition negotiations falter.<\/p>\n\n\n\n<p>Despite global uncertainty, some bright spots emerged. U.S. chipmaker <strong>AMD (NASDAQ: AMD)<\/strong> announced a multi-year deal to supply <strong>AI chips to OpenAI<\/strong>, potentially generating tens of billions in annual revenue.<\/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\">AMD landed a blockbuster deal with OpenAI to build artificial intelligence infrastructure, giving the chipmaker a chance to show it can mount a challenge to Nvidia in the AI computing industry. Here\u2019s your Evening Briefing <a href=\"https:\/\/t.co\/gvoUeGZkKN\">https:\/\/t.co\/gvoUeGZkKN<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1975320833447891418?ref_src=twsrc%5Etfw\">October 6, 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, optimism over artificial intelligence failed to lift broader risk appetite. <strong>Nasdaq futures dipped 0.02%<\/strong>, while <strong>S&amp;P 500 futures eased 0.05%<\/strong> from record highs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Outlook<\/h2>\n\n\n\n<p>The <strong>Nikkei 225<\/strong> is trading at <strong>48,090.65<\/strong>, down <strong>0.93%<\/strong> on the day, retreating after a strong multi-week rally. Despite today\u2019s correction, the index remains firmly within an uptrend, having surged nearly <strong>60%<\/strong> since the April low of <strong>30,397.3<\/strong>.<\/p>\n\n\n\n<p>The pullback appears to be a short-term pause rather than a reversal, as traders take profits following the break above the key <strong>48,000<\/strong> psychological level.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"445\" src=\"https:\/\/www.vtmarkets.com\/sv\/wp-content\/uploads\/sites\/10\/2025\/10\/image-9-1024x445.jpeg\" alt=\"\" class=\"wp-image-31643\" srcset=\"https:\/\/www.vtmarkets.com\/sv-eu\/wp-content\/uploads\/sites\/10\/2025\/10\/image-9-1024x445.jpeg 1024w, https:\/\/www.vtmarkets.com\/sv-eu\/wp-content\/uploads\/sites\/10\/2025\/10\/image-9-300x130.jpeg 300w, https:\/\/www.vtmarkets.com\/sv-eu\/wp-content\/uploads\/sites\/10\/2025\/10\/image-9-768x334.jpeg 768w, https:\/\/www.vtmarkets.com\/sv-eu\/wp-content\/uploads\/sites\/10\/2025\/10\/image-9.jpeg 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Technically, the <strong>5-, 10-, and 30-day moving averages<\/strong> continue to show bullish alignment, with price still hovering above them, indicating the broader trend remains upward.<\/p>\n\n\n\n<p>Immediate resistance sits at <strong>48,500\u201348,700<\/strong>, where the market recently stalled. On the downside, support lies near <strong>44,200<\/strong>, followed by a stronger base around <strong>39,800<\/strong>, both of which mark previous breakout zones.<\/p>\n\n\n\n<p>The <strong>MACD<\/strong> indicator shows early signs of momentum cooling. The MACD line remains above the signal line, but the histogram is narrowing, suggesting waning bullish strength.<\/p>\n\n\n\n<p>If the divergence deepens, short-term traders might see a deeper retracement before the next leg higher.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Cautious Forecast<\/h2>\n\n\n\n<p>Fundamentally, the Nikkei\u2019s resilience continues to be supported by a weak yen, ongoing foreign inflows, and expectations of loose monetary policy under Japan\u2019s new leadership.<\/p>\n\n\n\n<p>However, concerns around U.S. fiscal policy and slowing Chinese demand may cap further gains in the near term.<\/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\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Nikkei 225 retreated from record highs as political uncertainty in Japan and France weighed on sentiment. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":5,"featured_media":20961,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[8,24],"class_list":["post-31642","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\/sv-eu\/wp-json\/wp\/v2\/posts\/31642","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/comments?post=31642"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/posts\/31642\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/media\/20961"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/media?parent=31642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/categories?post=31642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/tags?post=31642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}