Key Points:
- Nikkei 225 drops 0.18%, closing at 37,608.
- Trump’s looming tariff deadline impacts sentiment.
- Japan’s private sector contracts, with manufacturing downturn.
- Index heavyweights such as Mitsubishi Heavy and Mitsubishi UFJ saw notable declines.
Nikkei 225 Continues Downtrend Amid Trade War Concerns
The Nikkei 225 Index fell 0.18%, closing at 37,608, marking the third consecutive day of losses. Sentiment remains clouded as investors keep an eye on US President Trump’s April 2 deadline for reciprocal tariffs.
Trump’s Friday remarks introduced some uncertainty, with reports suggesting the tariffs could be narrower than initially planned, sparking hopes of reduced trade tensions. However, concerns still linger.
Japan’s Economic Slowdown Weighs on Market
In local economic news, Japan’s private sector activity contracted for the first time in five months, with manufacturing extending its nine-month downturn. Services activity also turned negative, contributing to the broader market weakness.
Several index heavyweights saw notable declines, including Mitsubishi Heavy, down 2.2%, Mitsubishi UFJ, which fell 2%, and Disco Corp, which slid 1.7%. These losses contributed to the overall negative market sentiment.
Technical Outlook
Picture: Nikkei 225 tests resistance at 37,845.65 after a rise from 37,353.15, as seen on the VT Markets app.
The Nikkei 225 increased by 0.01%, closing at 37,685.15 after opening at 37,681.50. The session saw a sharp rise, reaching a high of 37,845.65 before retracing slightly to close near 37,685.15.
The moving averages (MA 5,10,30) show bullish momentum, with the short-term MAs crossing above the longer-term moving averages. This indicates an ongoing upward price trend. The MACD (12,26,9) shows a shift towards neutral momentum, as the histogram is narrowing and the MACD line (blue) is approaching the signal line (yellow), suggesting that bullish momentum may be losing strength.
Key levels to monitor include 37,845.65 as immediate resistance and 37,353.15 as key support.
The Nikkei 225 continues to face downward pressure from global trade tensions and domestic economic weakness. A cautious market awaits Trump’s tariff announcement, while Japan’s sluggish growth adds further uncertainty. With technical support around 37,600, a break lower could see further declines, but any reduction in tariff scope or stronger economic data may provide a temporary boost.
