Nikkei 225 Plummets Amid Global Market Turmoil

On April 7, 2025, the Japanese stock market experienced a dramatic plunge, with the Nikkei 225 index falling by 2,843.48 points, or 8.42%, to settle at 30,937.10 points within the first 15 minutes of trading. This marked the lowest level for the index since October 2023.

The Topix index, which represents the entire market, also suffered a significant decline, dropping by 215.40 points, equivalent to 8.68%, landing at 2,266.66 points. The sharp downturn prompted the activation of a market circuit breaker for Nikkei index futures, temporarily halting trading due to the steep decline. According to market regulations, this mechanism is triggered when the Nikkei futures contract fluctuates by more than 8% in either direction.

Across Asia, the negative sentiment was palpable. The Kospi index in South Korea fell by more than 4.8%, while China's Shanghai Composite index dropped by 4%. Hong Kong's Hang Seng index fared even worse, plummeting nearly 10%. Meanwhile, Australia’s S&P/ASX 200 index lost 6% right at the open and has now entered correction territory, down 11% from its peak in February.

Market analysts attribute this widespread decline to a combination of factors, including the recent imposition of retaliatory tariffs by China against the United States. The escalating trade tensions have led to increased uncertainty in global markets, prompting investors to pull back.

In Vietnam, the stock market also felt the tremors of this global downturn. On April 4, 2025, the VN-Index opened with a significant gap down of nearly 70 points. However, strong bottom-fishing demand in the range of 1,150 to 1,160 points helped the index recover, closing at 1,210.67 points. This represented a narrowing of the decline to nearly 20 points compared to the previous session.

Despite this recovery, foreign investors continued to net sell nearly 3,000 billion VND on the HOSE floor, although they did net buy on the HNX floor during the same period. The overall market breadth leaned negatively, with all 18 sectors experiencing declines.

Analysts from BIDV Securities (BSC) noted that a sentiment of bottom-fishing had emerged following the previous panic session. They cautioned, however, that the VN-Index's performance in the upcoming sessions remains unpredictable. They emphasized the need for a tighter trading range to establish a solid price foundation.

SSI Securities observed that the decline of the VN-Index had significantly halted due to increased low-price demand. They identified a critical support level between 1,180 and 1,200 points, which has proven effective in stabilizing the index. They suggested that any recovery would likely face resistance in the 1,220 to 1,230 point range.

ACB Securities reported that while the VN-Index opened with a sharp decline of nearly 72 points, strong bottom-fishing activity bolstered the index, helping it recover more than 50 points from its intraday low. They highlighted that the market's liquidity was notably better compared to the previous steep decline, indicating robust buying interest.

TPBank Securities (TPS) pointed out that the market continued to open amid investor panic, with a sell-off causing the VN-Index and VN30 to reach long-term support levels around 1,166 points and 1,228 points, respectively. They noted that despite the good demand that helped narrow the decline, the potential for technical recovery remains uncertain, with the index possibly retesting long-term support levels.

In the futures market, the phai sinh closed down 98 points at 1,267.1 points, reflecting a drop of 172 points from peak to trough during the week, largely due to the shock from U.S. President’s tax measures. Foreign investors were reported to have net sold over 5,500 contracts during the week, further contributing to the market's downward spiral.

As the global landscape continues to shift, with trade tensions and economic forecasts remaining volatile, market participants are urged to remain cautious. The upcoming week holds significant importance as Vietnam and the United States are expected to negotiate potential agreements regarding tariffs by April 9, 2025. These discussions could play a crucial role in shaping market sentiment moving forward.

With the current market conditions, investors are advised to consider various trading strategies based on their risk tolerance. TPS suggested a long position in the range of 1,240 to 1,245 points, with a stop-loss set if the index falls below 1,235 points. Conversely, they recommended short positions in the resistance zone of 1,265 to 1,275 points, with a stop-loss if the index exceeds 1,281 points.

In summary, as the global markets grapple with rising uncertainties, the Japanese and Vietnamese stock markets reflect a broader trend of caution and volatility. Investors are advised to stay informed and agile as they navigate these challenging conditions.