Nikkei tumbled 4.0%
The Nikkei 225 plunged 4.03% to close at 64,141.12 on Thursday, deepening a slide that has erased nearly all of the index's gains from the past three months. The drop marked the fourth straight session of losses and left the benchmark down 6.44% for the week and 9.73% over the past month, though it remains up 27.42% since the start of the year.
The index now sits 11.37% below its 52-week high of 72,366.34 reached earlier this year, placing it in correction territory, defined as a decline of 10% or more from a recent peak. From its 52-week low of 39,774.92, the Nikkei still holds a substantial 61.26% gain. Technically, the index has fallen below its 50-day simple moving average of 66,662.77, a short-term trend indicator, but remains well above its 200-day average of 56,119.97, which typically signals longer-term momentum.
The selling in Tokyo outpaced declines across most major global markets. Wall Street indices fell more modestly, with the S&P 500 down 1.01%, the Nasdaq off 1.4%, and the Dow Jones Industrial Average slipping 0.77%. European benchmarks showed relative resilience: the DAX eased 0.29%, the CAC 40 lost 0.23%, and the Euro Stoxx 50 declined 0.22%. In Asia, the KOSPI suffered an even steeper drop of 4.46%, while mainland Chinese markets bucked the trend with the Hang Seng rising 1.96% and Shanghai gaining 0.85%.
According to a headline from Invezz, the Nikkei slid as SoftBank, Tokyo Electron, and Kioxia stocks sank. A Reuters headline cited a tech selloff and Middle East conflict as factors pushing the index into correction zone. However, the evidence pack does not establish a definitive driver for Thursday's move, and several headlines referenced in the pack predate the session or address broader market themes rather than specific Thursday developments.
The sharp weekly swing—described in a headline from finance.biggo.com as 4,000 points—highlights elevated volatility in Japanese equities after a strong first half. The index's position above its 200-day moving average suggests the longer-term uptrend that began late last year remains technically intact, even as near-term momentum has deteriorated rapidly.
What Thursday's session establishes is that selling pressure in Japanese technology and chip-related shares intensified alongside weakness in South Korean peers, with the KOSPI's 4.46% drop pointing to regional rather than Japan-specific dynamics. What it does not establish is whether this represents a temporary pullback within the year-to-date rally or the start of a more sustained reversal, nor does the evidence confirm which headlines, if any, directly triggered the day's selling.
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 -0.70%
- DAX -0.29%
- CAC 40 -0.23%
- Euro Stoxx 50 -0.22%
- Hang Seng +1.96%
- Shanghai +0.85%
- KOSPI -4.46%
- TAIEX -0.52%
- ASX 200 -0.06%
- Sensex -0.99%
- Nifty 50 -0.62%
Recent headlines
- Japan's Nikkei slides into correction zone on tech selloff, Middle East conflict — Reuters (3d ago)
- Tokyo market shuts for Marine Day holiday, Nikkei chip focus to be tested Tuesday — TechStock² (10h ago)
- Macroscope | Why Japan should be able to weather a US market crash — South China Morning Post (1d ago)
- Nikkei 225 Swings Wildly by 4,000 Points in a Week; Post-Holiday Trading to See Tug-of-War Between U.S. Stock Weakness and Technical Rebound — finance.biggo.com (20h ago)
- Japan-South Korea Stock Market Stampede Storm Continues: Nikkei 225 and KOSPI Struggle Under Pressure, SoftBank and Kioxia Tumble 5%, Samsung and SK Hynix Decline Slows — TradingKey (6d ago)
- Nikkei 225 slides as SoftBank, Tokyo Electron, and Kioxia stocks sink — Invezz (4h ago)
- Nikkei reaches new record as BoJ intensifies its restrictive stance — equiti.com (6d ago)
- Nikkei 225 Falls as Chip Sell-Off Hits Japan Stocks — VT Markets (4d ago)
Sources
- Japan's Nikkei slides into correction zone on tech selloff, Middle East conflict — Reuters
- Tokyo market shuts for Marine Day holiday, Nikkei chip focus to be tested Tuesday — TechStock²
- Macroscope | Why Japan should be able to weather a US market crash — South China Morning Post
- Nikkei 225 Swings Wildly by 4,000 Points in a Week; Post-Holiday Trading to See Tug-of-War Between U.S. Stock Weakness and Technical Rebound — finance.biggo.com
- Japan-South Korea Stock Market Stampede Storm Continues: Nikkei 225 and KOSPI Struggle Under Pressure, SoftBank and Kioxia Tumble 5%, Samsung and SK Hynix Decline Slows — TradingKey
- Nikkei 225 slides as SoftBank, Tokyo Electron, and Kioxia stocks sink — Invezz
- Nikkei reaches new record as BoJ intensifies its restrictive stance — equiti.com
- Nikkei 225 Falls as Chip Sell-Off Hits Japan Stocks — VT Markets
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