nikkei rallies: is this the start of a sustained recovery?

2025-04-23 general

Tokyo, Wednesday, 23 April 2025.
tokyo’s nikkei stock average experienced a notable rebound, soaring by 648 yen. this surge follows positive signals from easing us-china trade tensions, coupled with a weaker yen. semiconductor and automobile stocks spearheaded the gains. this surge marks a recovery from previous losses fueled by tariff anxieties. the nikkei temporarily breached the 35,000 mark, a psychological threshold not seen in three weeks, before profit-taking curbed further gains. will this momentum continue, or is it a fleeting upswing?

market overview

The Nikkei Stock Average closed at 34,868.63 yen, a rise of 648.03 yen, or 1.89%, compared to the previous day’s close [1]. This resurgence followed positive cues from the us stock market, spurred by comments from us treasury secretary vessecent hinting at easing trade tensions with china [1][2]. Furthermore, president trump’s denial of plans to dismiss federal reserve chairman powell contributed to a weaker yen, boosting export-oriented stocks [1]. The tokyo stock price index (topix) also saw gains, closing up 52.20 points, or 2.06%, at 2584.32 [1].

factors driving the rebound

Investor sentiment improved due to signals of potential de-escalation in us-china trade friction [1][2]. Bessent’s remarks about expecting improvement in the trade situation alleviated concerns about increasing corporate burdens and global economic slowdown [1]. The yen’s depreciation, influenced by trump’s comments on the fed chair, further supported the market [1]. A weaker yen benefits japanese exporters, making their products more competitive internationally, which typically translates to higher stock valuations [1].

expert analysis and market outlook

Kohei Onishi, a senior investment strategist at mitsubishi ufj morgan stanley securities, noted that while the market positively received news regarding trump’s tariffs, profit-taking emerged near the 35,000 yen mark [1]. He suggested that investors are hesitant to aggressively pursue higher prices ahead of the full-fledged earnings announcement season [1]. This caution suggests that while the current rebound is encouraging, its sustainability is uncertain, pending further economic data and corporate performance reports [alert! ‘expert opinion’] [1].

sector performance and key stocks

Financial stocks, including tokyo marine and mitsubishi ufj, performed strongly [1]. Export-oriented companies like toyota, fujifilm, and sony group also experienced gains [1]. Conversely, sanrio, nitori hd, and shift faced declines [1]. Olympus stock closed at 1812.0, up 54.0 or 3.072 3.07% [7]. However, nomura downgraded olympus from buy to hold, adjusting the price target from 3300 yen to 1900 yen [7]. This mixed performance indicates sector-specific factors are also at play, influencing individual stock valuations [7].

Bronnen

Stock Rebound Trade Friction