Nikkei Takes a Dive: Is the US Economy to Blame?

2025-08-04 general

tokyo, Monday, 4 August 2025.
Tokyo’s stock market stumbled today. The Nikkei average dipped below 40000 yen. This drop reflects growing unease. Investors are worried about the strength of the US economy. July’s US employment figures disappointed. Non-farm payrolls grew less than expected. Previous months’ data got downward revisions. This fueled fears of a slowdown across the pacific. The news triggered a sell-off in Tokyo. Market sentiment suffered significantly. Is this a temporary setback, or a sign of deeper troubles ahead?

Market opening and intraday drop

The Nikkei average began sharply lower today, continuing its decline [1]. The opening price was ¥40,118.81, a decrease of ¥680.79 from the previous trading day [1]. During the trading day, the Nikkei briefly fell below the ¥40,000 mark [2]. The market’s downturn accelerated due to disappointing US employment data [2]. This decline reflects investor anxiety. They are concerned about a potential slowdown in the US economy [1][2].

us economic data weighs heavy

US employment statistics for July revealed a weaker-than-anticipated increase in non-farm payrolls [1][2]. Figures from prior months were also revised downward [2]. This news heightened concerns about a possible US economic deceleration [1][2]. The weak employment data triggered a sell-off in the Tokyo market [1]. Investors are closely watching these indicators. They are using them to gauge the health and stability of the US economy, which significantly influences global markets [6].

analyst outlook and nikkei 225 forecast

Analysts at IG Securities suggest caution. They anticipate a potentially bearish trend for the Nikkei average in the coming week [7]. The projected range for the Nikkei 225 is ¥38,600 to ¥40,500 [7]. This forecast reflects concerns regarding the US economic outlook [7]. The VIX index, a measure of market volatility, has risen to 20, reflecting increased investor apprehension [7]. Investors should monitor these levels closely. They can provide insight into potential support and resistance areas.

tokyo electron’s struggles impact nikkei

Shares of Tokyo Electron have significantly impacted the Nikkei’s performance [5]. The stock price of Tokyo Electron decreased by 19.87% in the week leading up to August 1, 2025 [5]. This decline alone pulled the Nikkei average down by ¥562 [5]. The company projects an 18% decrease in consolidated net profit for the fiscal year ending March 2026, forecasting ¥444 billion [7]. The annual dividend forecast was also reduced from ¥618 to ¥485 [7]. These factors contributed to negative sentiment.

market sentiment and closing figures

The Nikkei average closed at ¥40,799.60 on August 1, 2025, a decrease of ¥270.22 from the previous day [5]. The index experienced a weekly decline of ¥656.63 [5]. As of 09:18 today, August 4, 2025, the Nikkei stood at ¥39,988.36, down ¥811.24 or 1.99% [4]. These figures underscore the current market volatility. Investors should remain vigilant. Monitoring global economic trends will be crucial for navigating these uncertain times [6].

Bronnen

stock market economic slowdown