Will Nikkei 225 Rebound on 10 April After Sharp Fall? All Eyes on Nasdaq Signal

Key Highlights:

The Nikkei 225 closed at 31,714.03 on 9 April 2025, registering a steep drop of 1,298.55 points or 3.93%, marking one of its most significant declines in recent weeks. This bearish session was driven by investor caution, a stronger yen, and profit booking across tech and export-heavy sectors.

However, the Nasdaq Composite’s explosive 12.16% rally hours later has created a ripple effect in global investor sentiment, suggesting a potential rebound in the Nikkei 225 today, 10 April 2025.

Nikkei 225 Performance Recap – 9 April 2025

What Triggered Nikkei’s Drop?

Several key factors contributed to the sharp fall in the Nikkei 225:

• Rising Yen: The Japanese yen strengthened against the U.S. dollar, hurting export-heavy stocks like Toyota, Sony, and Panasonic.
• Tech Sell-Off: Concerns over global tech valuations led to heavy sell-offs in semiconductor and electronics stocks.
• Profit Booking: After a brief rally in March-end, institutional investors took profits ahead of new earnings announcements.
• Geopolitical Concerns: Renewed tensions in East Asia also weighed on risk appetite.

Global Mood Shift: Nasdaq Composite’s 12% Rally Could Lift Nikkei

The Nasdaq Composite’s powerful 1,857-point gain on 9 April, closing at 17,124.97, serves as a major cue for global markets. Nasdaq’s sharp reversal reflects:

• Tech recovery optimism
• Rate cut hopes by the U.S. Federal Reserve
• Fresh AI and semiconductor stock buying

This could directly influence sentiment across Asian indices, particularly the tech-heavy Nikkei 225.

Nikkei 225 Prediction – 10 April 2025

Here’s what investors can expect for the Nikkei 225 on 10 April 2025:

• Sentiment Outlook: Mildly bullish to strong rebound, tracking global optimism.
• Opening Trend: Likely to open 1–1.5% higher based on U.S. futures and Nasdaq sentiment.
• Sectors to Watch:
  • Semiconductors (Tokyo Electron, Advantest) – expected to rebound.
  • Automotive exporters may gain if yen stabilizes.
  • Tech stocks could see inflows after Wall Street cues.

Key Market Signals to Watch Today

1. Yen/USD Movement
A weaker yen will boost exporter stocks. Current forex trends suggest slight yen weakness, which supports upside for Nikkei.

2. Nasdaq Futures During Asia Trading Hours
If Nasdaq futures stay green during Tokyo trading, Nikkei could hold onto intraday gains.

3. Local Economic Data
Any updates on Japan’s machinery orders or bank lending may sway domestic investor sentiment.

4. Institutional Flow
Foreign institutional investors (FIIs) may return to buying mode if global risk appetite improves.

Technical Levels to Watch – 10 April 2025

The 31,500 level is a psychological support zone. A close above 32,100 will confirm a short-term trend reversal.

Analyst View: Can Nikkei Sustain Gains?

“While Japan’s economy faces structural challenges, the Nikkei is still highly sensitive to global cues,” said Hiroshi Yamamoto, senior analyst at Nomura. “With Nasdaq’s rally signaling strong risk appetite, Japan’s tech-heavy index is likely to rebound in the near term.”

Nikkei 225 Poised for a Bounce

The Nikkei 225, after suffering a sharp 3.93% loss on 9 April, may witness a technical and sentiment-driven rebound on 10 April, supported by global bullish cues, especially from the Nasdaq Composite.

Investors are advised to stay cautious of intraday volatility but can expect short-term gains in tech and export stocks as Asia reacts to Wall Street’s powerful reversal.

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