WhyItDropped

Nikkei 225 · April 8, 2025

The day after the tariff-shock bottom

+6.03%

single-day change vs previous close

Part of a longer stretch

The Nikkei's rebound after the tariff pause

early in it · 2025-04-07 → 2025-08-12, +37.20% over the whole period

What happened that day?

  • The Nikkei 225 rose 6.03% on the day. The previous session, 7 April, had been the bottom of this tariff shock
  • The Nikkei had fallen heavily that previous day. Asia was hit first after the US announced its reciprocal tariffs
  • Much of this day's gain came from Japan saying it would open negotiations with the US, which left room for the tariff rate to change
  • Japan depends heavily on exporting cars and machinery and is unusually sensitive to tariffs, so it reacted strongly to any sign of room to negotiate
  • Shares fell again the next day, though. Starting talks is not the same as having a result
  • The rebound was only sealed the day after that, when the US announced a 90-day pause

Sources

Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.