In March 2025, the Nikkei 225 began the month on a soft note, declining from the previous month’s close of 37,155, following the enforcement of additional U.S. tariffs. However, market fears temporarily eased after the announcement on the night of March 5 of a grace period for Mexico and Canada, leading the Nikkei to rebound to 37,704 on March 6. Subsequently, the market moved sideways, weighed down by weakness in U.S. tech stocks, speculation over an additional BOJ rate hike, and a stronger yen. In mid-March and beyond, rising U.S. stocks and a weakening yen supported the market, with the Nikkei climbing to a monthly closing high of 38,027 on March 26. However, later that night, U.S. President Donald Trump announced the imposition of auto tariffs, reigniting fears of a global economic slowdown. Selling spread across economically sensitive stocks, and on the final trading day of the fiscal year, March 31, the Nikkei dropped by over 1,500 yen, closing at 35,617. By investor type, trust banks and business corporations were net buyers, while foreign investors and individuals were net sellers (as shown in Figure 1).
