Nikkei 225 Shows Resilience Amidst Global Concerns

The Nikkei 225 rose by 373 points, or 0.99%, closing at 38,063.92 on Wednesday. The index’s movement was supported by optimism over the possible narrowing of tariff measures by U.S. President Donald Trump, who hinted on Friday at some “flexibility” in the tariff plan.

This helped lift sentiment in Tokyo’s market despite the broader uncertainty regarding trade policies. The Nikkei index reached a high of 38,228.92 earlier in the day but experienced slight cooling towards the end of the session.

Sectoral Movements and Market Drivers

In terms of sector performance, notable gainers included Sumitomo Metal Mining, which saw a rise of 5.60%, Konica Minolta, up 5.34%, and Mitsui Mining & Smelting, which advanced 4.55%.

On the downside, major declines were seen in Keisei Electric Railway (-3.73%), Mitsubishi Heavy Industries (-2.71%), and Japan Steel Works (-2.67%).

These movements were driven by both external and internal factors—specifically, tariff uncertainties and concerns about a slowdown in Japan’s economic growth, particularly in the manufacturing sector. However, reports suggesting that U.S. tariffs could be more targeted helped calm some nerves, allowing some sectors to rise.

Technical Outlook

Picture: Nikkei 225 tests resistance at 38,228.92 after a slight pullback from 38,079.50, as seen on the VT Markets app.

Nikkei 225 decreased slightly by 0.04%, closing at 38,063.92 after opening at 38,079.50. The session saw an early rise, reaching a high of 38,228.92 before retracing, with price action finding support near 38,000.

The moving averages (MA 5,10,30) indicate bullish momentum, with short-term MAs remaining above longer-term averages, suggesting a continuation of upward movement. The MACD (12,26,9) shows a shift toward a more neutral stance, as the histogram narrows, and the MACD line (blue) approaches the signal line (yellow), indicating that the bullish momentum may be losing strength.

Key levels to monitor include 38,071.62 as immediate support and 38,228.92 as resistance. A break above resistance could signal further upside momentum, while a drop below support could suggest a potential shift to a bearish bias.

Given the ongoing global trade concerns and the recent tariff news, the Nikkei 225 is likely to see continued volatility.