Nikkei 225 Closes Down 2,644 Points in Worst Day Since 2020 – What to Expect Today
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The Tokyo Stock Exchange closed sharply lower on April 7, 2025, as the Nikkei 225 Index plummeted by 2,644 points, or 7.83%, finishing the day at 31,136.58. This marks the index’s worst single-day performance since the early days of the COVID-19 pandemic and reflects mounting fears over global recession, U.S. tariff tensions, and a sharp shift in investor sentiment across Asia.
Nikkei 225 Final Snapshot – April 7, 2025
- Close: 31,136.58
- Change: –2,644.00 (–7.83%)
- Open: 33,154.97
- High: 33,158.87
- Low: 30,792.74 (52-week low)
- Previous Close: 33,780.58
- 52-week high: 42,426.77
The drop below the 31,500 psychological level confirms a full-blown correction. The index also touched a new 52-week low of 30,792.74, wiping out nearly two months’ worth of gains in a single session.
What Caused the Nikkei Meltdown?
The collapse came amid growing concerns that the Trump administration’s proposed “reciprocal tariffs” could trigger a global trade war, significantly damaging export-heavy economies like Japan. Other contributing factors include:
- Weakening global demand
- Panic selling among retail investors
- Institutional stop-loss triggers
- A sharp drop in semiconductor and automotive stocks
- Pressure from a strengthening yen
April 8 Pre-Market Outlook: Will the Nikkei Bounce Back?
Despite Monday’s historic fall, analysts suggest the Nikkei may attempt a technical rebound on April 8, especially if other global indices remain steady.
Supporting Factors:
- Nasdaq Composite closed green (+0.099%)
- RSI and MACD indicators show deeply oversold levels
- Value-buying likely in top-tier export and banking names
Risks Ahead:
- U.S. trade policy escalation
- Weak Asian and commodity cues
- Investor confidence damaged after sharp technical breakdown
“We’re entering rebound territory, but investor trust is fragile. We need global policy signals or central bank support for a real recovery,” said Hiroshi Yamada, Chief Strategist at Nikko Securities.
Key Sectors That Dragged the Index
- Tech: SoftBank, Advantest, and Tokyo Electron dropped over 8%
- Auto: Toyota and Honda slumped due to demand fears
- Finance: Mitsubishi UFJ and Sumitomo Mitsui fell with global yield concerns
- Retail: Uniqlo-parent Fast Retailing slid sharply on consumer slowdown fears
Nikkei 225 Faces Make-or-Break Session on April 8
The Nikkei 225’s 2,644-point crash on April 7 will go down as one of the most severe in modern trading history. While technical indicators point to a possible short-term recovery, the path ahead remains uncertain and highly sensitive to global developments.
As investors return for Tuesday’s trade, much will depend on Wall Street futures, currency movement, and broader Asia-Pacific sentiment.
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