Buying Nikkei 225 As It Tries to Find Support After Sharp 10% Decline
Japan’s Nikkei 225 tumbled nearly 3% as escalating Middle East tensions triggered broad risk-off selling across global markets.
Quick overview
- Japan's Nikkei 225 index fell nearly 3%, closing 2.90% lower due to rising geopolitical tensions in the Middle East.
- The index found temporary support near its 50-day simple moving average at 54,638, indicating a potential stabilization point.
- Market sentiment improved slightly after U.S. President Trump announced military protection for maritime trade, leading to a decline in crude oil prices.
- Despite some recovery in U.S. markets, most Asia-Pacific markets are expected to open lower as investors remain cautious.
Live NIKKEI225 Chart
Japan’s Nikkei 225 tumbled nearly 3% as escalating Middle East tensions triggered broad risk-off selling across global markets.
Nikkei Suffers Sharp Decline
The Nikkei 225 closed 2.90% lower on Tuesday, shedding 1,685 points as geopolitical tensions intensified. The index finished at 56,279.05 before extending losses further to 54,638 during subsequent trading.
Futures markets signaled continued weakness, with Chicago Nikkei futures at 55,085 and Osaka contracts at 55,320—both pointing to a softer open compared to the prior close.
Nikkei 225 Chart Daily – The 50 SMA Seems to Be Holding As Support
At 54,638, the index found technical support near its 50-day simple moving average, an area that may serve as a short-term stabilization point.
Oil Reversal Eases Pressure
Market sentiment improved later after Donald Trump stated that the U.S. could provide military protection for ships traveling through the Strait of Hormuz. He also directed the United States International Development Finance Corporation (DFC) to offer political risk insurance and guarantees for maritime trade.
As a result, crude oil prices moved lower, helping U.S. indices recover from deep losses. This stabilization in U.S. markets may support a rebound in the Nikkei as well.
Broader Asia Under Pressure
Despite the late-session improvement in U.S. equities, most Asia-Pacific markets were set to open lower Wednesday. Investors remain cautious amid the escalating conflict while also monitoring China’s annual parliamentary meeting for potential economic policy signals.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
- Read our latest reviews on: Avatrade, Exness, HFM and XM
Save