{"id":21713,"date":"2025-05-09T08:31:05","date_gmt":"2025-05-09T08:31:05","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=21713"},"modified":"2025-05-09T08:31:05","modified_gmt":"2025-05-09T08:31:05","slug":"nikkei-rallies-as-u-s-uk-deal-lifts-risk-mood","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/nikkei-rallies-as-u-s-uk-deal-lifts-risk-mood\/","title":{"rendered":"Nikkei Rallies as U.S.-UK Deal Lifts Risk Mood"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.global-vtrader.com\/en\/wp-content\/uploads\/sites\/4\/2025\/05\/image_fx-86-1024x559.png\" alt=\"\" class=\"wp-image-20961\" \/><\/figure>\n\n\n\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Nikkei closes at 37,503.33, up 1.56%, notching fourth straight weekly gain.<\/li>\n\n\n\n<li>Optimism builds ahead of weekend U.S.-China talks; Topix rallies for 11 consecutive sessions.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>Japan\u2019s Nikkei 225 closed at its highest level since 27 March, gaining 1.56% on Friday to end the session at 37,503.33. The move capped a strong week, with the index climbing 1.83% over the shortened holiday stretch and marking four straight weeks of advances.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">US cedes little ground on key tariffs in talks with Japan, Nikkei says <a href=\"https:\/\/t.co\/gkRyKPChiz\">https:\/\/t.co\/gkRyKPChiz<\/a> <a href=\"https:\/\/t.co\/gkRyKPChiz\">https:\/\/t.co\/gkRyKPChiz<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1918379989763789196?ref_src=twsrc%5Etfw\">May 2, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The broader Topix index surged 1.29% to 2,733.49, logging an 11-session winning streak\u2014its longest run since October 2017. Renewed risk appetite drove the rally, following Thursday\u2019s announcement of a limited <a href=\"https:\/\/t.co\/1Io1CATWWt\">trade agreement<\/a> between the United States and the United Kingdom.<\/p>\n\n\n\n<p>Although U.S. President Donald Trump <a href=\"https:\/\/www.nbcnews.com\/politics\/white-house\/trump-says-major-trade-deal-will-discussed-white-house-event-thursday-rcna205509\">confirmed that existing 10% tariffs<\/a> on British exports would remain in place, markets welcomed the agreement as a signal of easing protectionist pressure. Optimism extended toward the upcoming U.S.-China trade negotiations in Switzerland, where Trump suggested punitive tariffs on Chinese goods\u2014currently at 145%\u2014could be reduced.<\/p>\n\n\n\n<p>Traders took the developments as a turning point in April\u2019s slump. \u201cThe environment not just for equities but for bonds is only getting better as more compromises on trade talks could be possible,\u201d said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management.<\/p>\n\n\n\n<p>Japanese equities also found relief in improving earnings sentiment. Despite tariff concerns, firms like <a href=\"https:\/\/t.co\/Tsm4UfallG\">Toyota appear insulated<\/a> from worst-case scenarios, easing investor fears of corporate damage.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The Nikkei225 has extended its upward momentum after rebounding from the <strong>low of 36,553<\/strong>, climbing steadily to challenge the <strong>37,653<\/strong> resistance level. The index is now consolidating just below that key high, with <strong>short-term moving averages (5, 10, and 30)<\/strong> trending upward and providing dynamic support. Price action remains bullish overall, with higher lows forming on each intraday dip.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.global-vtrader.com\/en\/wp-content\/uploads\/sites\/4\/2025\/05\/image-9-1024x446.jpg\" alt=\"\" class=\"wp-image-21714\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: Nikkei225 edges toward 37,653 peak as momentum firms, as seen on the <\/em><em><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>The <strong>MACD histogram<\/strong> has flipped back to green after a brief contraction, and a <strong>bullish crossover<\/strong> appears to be forming again above the zero line, which could strengthen the case for another test of the recent high. However, unless <strong>37,653<\/strong> is broken decisively, the current rangebound pattern between <strong>37,250<\/strong> and <strong>37,650<\/strong> may continue to dominate the near-term.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Cautious Outlook<\/h2>\n\n\n\n<p>Markets will turn their attention to Saturday\u2019s <a href=\"https:\/\/t.co\/hBtFpIzc4u\">U.S.-China talks<\/a> for confirmation of trade thaw. A positive outcome could fuel further gains for equities in Asia and globally. However, traders should brace for volatility if talks stall or fail to deliver concrete tariff relief. The Nikkei\u2019s next hurdle lies near 38,000, with short-term support forming around the 36,800\u201336,900 zone.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and <\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login?_gl=1*1azgbap*_gcl_au*NjE5NTE3MjY4LjE3NDQ2MDA3NDI.*_ga*MTY4OTgwNTU5Mi4xNzM2NzQ2MTgy*_ga_J26NL1ZVX7*czE3NDQ5NDQ0NTYkbzEyMCRnMCR0MTc0NDk0NDQ1NiRqNjAkbDAkaDA.\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Equities rebound on tariff relief hopes; Topix marks longest winning streak since 2017. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":2,"featured_media":20961,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[31,37],"class_list":["post-21713","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-indices","tag-nikkei"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/21713","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=21713"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/21713\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media\/20961"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=21713"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=21713"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=21713"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}