Nikkei tumbled 4.0%
The Nikkei 225 tumbled 4.03% on Thursday to finish at 64,141.12, extending a bruising run that has now dragged the Japanese benchmark down 6.44% for the week and 9.73% over the past month. The decline left the index 11.37% below its 52-week high of 72,366.34 reached earlier this year, though it remains 61.26% above the 52-week low of 39,774.92.
Technically, the index has slipped below its 50-day simple moving average of 66,662.77, a short-term trend indicator that now signals near-term weakness. The Nikkei still holds a comfortable margin above its 200-day moving average of 56,119.97, which longer-term investors watch to gauge the broader trend. For the year to date, the index retains a substantial gain of 27.42%, built largely on a 10.33% advance over the preceding three months that has now given way to sharp selling pressure.
The damage was not confined to Tokyo. Asian markets led global declines, with South Korea's KOSPI plunging 6.37% and Taiwan's TAIEX falling 6.47%. Mainland China's Shanghai Composite dropped 3.05% and Hong Kong's Hang Seng shed 1.78%. In Europe, losses were more modest: the Euro Stoxx 50 fell 0.84%, France's CAC 40 lost 0.47%, Germany's DAX dipped 0.34%, and London's FTSE 100 actually edged up 0.27%. U.S. equity futures pointed lower ahead of Wall Street's open, with the S&P 500 indicated down 1.01%, the Nasdaq down 1.4%, and the Dow down 0.77%. Australia's ASX 200 declined 0.5%, while India's Sensex and Nifty 50 bucked the trend with gains of 1.25% and 1.09% respectively.
The evidence pack contains no news headlines to explain the Nikkei's steep decline, leaving the specific catalyst for Thursday's selling unclear. What the data does establish is a sharp deterioration in short-term momentum: the index has surrendered its position above the 50-day moving average and is approaching correction territory relative to its 52-week peak. The regional pattern suggests a broad risk-off move across developed Asian equity markets, with Japan and North Asia bearing the heaviest losses. What remains unestablished is whether this represents a sustained rotation or a temporary pullback within the year's larger upward trend.
The numbers
- Level 64,141.12, -4.03% on the day (as of 2026-07-17)
- 1-week -6.44% · 1-month -9.73% · 3-month +10.33% · YTD +27.42%
- 52-week range 39,774.92 – 72,366.34, 11.4% below the high
- Trading below its 50-day average and above its 200-day average
Around the world (same session)
- S&P 500 -1.01%
- Nasdaq -1.40%
- Dow -0.77%
- FTSE 100 +0.27%
- DAX -0.34%
- CAC 40 -0.47%
- Euro Stoxx 50 -0.84%
- Hang Seng -1.78%
- Shanghai -3.05%
- KOSPI -6.37%
- TAIEX -6.47%
- ASX 200 -0.50%
- Sensex +1.25%
- Nifty 50 +1.09%
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