Key Highlights:
The Nikkei 225 had its best trading day of the year on 10 April 2025, closing at 34,609.00 after surging by 2,894.97 points or 9.13%. The rally was fueled by a widespread tech-led rebound across Asia and optimism around chip stocks and AI innovation.
However, the late U.S. session changed the game. After Japan’s markets closed, the Nasdaq Composite dropped a staggering 737.66 points (-4.31%), triggering fresh global risk-off sentiment. With this reversal, traders are now asking: Can the Nikkei sustain its momentum?
Key Nikkei 225 Stats (April 10, 2025)
| Metric | Value |
|---|---|
| Close | 34,609.00 |
| Day’s Gain | +2,894.97 (+9.13%) |
| Previous Close | 31,714.03 |
| Day’s High | 34,639.39 |
| Day’s Low | 32,320.66 |
| 52-Week High | 42,426.77 |
| 52-Week Low | 30,792.74 |
What Triggered the Nasdaq Crash?
The Nasdaq Composite plunged by 737 points on April 10 after the release of hot U.S. inflation data, which stoked fears of further rate hikes by the Federal Reserve.
- Major U.S. tech stocks including Apple, Nvidia, Microsoft, and Meta were all deep in the red.
- The bond yield spike made high-growth tech stocks less attractive.
- The Dow Jones also tumbled over 1,000 points, amplifying the sell-off.
This U.S. tech meltdown threatens to spill over into Asian markets—especially Japan, where large-cap tech and chip stocks dominate the Nikkei 225.
Nikkei 225 Outlook for April 11: What to Expect
Given the overnight shock from Wall Street, the Nikkei 225 is expected to open lower on April 11, likely 1.5%–2.5% down, as global risk sentiment sours.
Likely Drivers of a Gap-Down Opening:
- Profit booking after the massive 9% rally.
- Tech-heavy pressure due to Nasdaq’s fall.
- Potential yen strength adding export worries.
- SGX Nikkei Futures trading weak in early Asian hours.
Sectors to Watch on the Nikkei
- Semiconductors & Tech
- Watch: Tokyo Electron, Advantest, Renesas, SoftBank
- These are closely correlated with Nasdaq’s movements and may mirror U.S. tech losses.
- Exporters
- Watch: Toyota, Honda, Sony, Panasonic
- If the yen strengthens as investors flee to safe-haven currencies, export stocks could dip.
- Financials & Industrials
- May see milder declines as Japan’s domestic outlook remains stable.
Support and Resistance Levels
| Level Type | Value |
|---|---|
| Immediate Resistance | 34,800 |
| Breakout Point | 35,000 |
| Support 1 | 33,800 |
| Support 2 | 33,000 |
| Trendline Support | 32,800 |
A break below 33,800 could push the index into a consolidation range between 32,800 and 33,500.
Expert Views
“Nikkei’s stellar rally was impressive, but the Nasdaq’s late crash could throw a wrench in the works. Global tech remains fragile,” said Takashi Yamaguchi, Senior Equity Strategist at Nomura Securities.
“Traders should brace for short-term volatility. If U.S. data remains hawkish, Japan’s market could see pressure despite its strong fundamentals,” noted Rachel Tanaka, Market Analyst at Tokyo Asset Watch.
Bulls on Alert as Global Winds Shift
After its 9% surge, the Nikkei 225 now faces a critical test. The Nasdaq crash has cast a long shadow over global equities, and Japan is unlikely to be immune. While the medium-term outlook remains constructive, the short-term may see profit booking and corrections, especially in tech and export names.
If Japan’s macro data and currency remain stable, dips could present buy-on-the-drop opportunities — but traders should tread carefully as global inflation anxiety returns to the spotlight.
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