Nikkei enters correction territory with over 4% slump amid tariff worries

Investing.com -- Japan’s premier stock index, the Nikkei 225, witnessed a sharp fall of 4.05% to close the trading day at 35,617.56, marking a near 12% drop from its peak in December.

This significant decline has pushed the index into what is commonly referred to as correction territory.

The broader Topix index was not immune to the downward pressure, losing 3.57% to end the day at 2,658.73. The market’s reaction reflects the ongoing apprehension among investors due to the imposition of tariffs by the Trump administration.

This latest market movement in Japan echoes the global concern around trade tensions and their potential impact on economic growth. The Nikkei 225’s entry into correction territory, defined as a 10% drop from recent highs, is a clear indicator of the prevailing investor sentiment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.Which stock should you buy in your very next trade?

With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

Unlock ProPicks AI