The U.S. Federal Reserve (Fed) has signaled an additional rate hike, while semiconductor stocks rose in the U.S. market. Buying in AI- and semiconductor-related stocks is expected to support the Nikkei in Tokyo trading, but expectations of another rate hike before year-end and developments in the Bank of Japan's monetary policy are seen limiting gains.
The Nikkei is expected to face pressure on the upside in Tokyo trading on the 17th. In the U.S. market, semiconductor stocks rose in addition to reports that the Fed had decided to raise interest rates. Buying in AI- and semiconductor-related stocks is expected to support the Nikkei in Tokyo.
However, many market participants believe the Fed is likely to raise interest rates again before year-end, while expectations that the Bank of Japan will accelerate the pace of rate hikes are also seen as a factor limiting stock-price gains. The Nikkei is expected to move around the previous day's closing level.
On current assumptions, the Nikkei is expected to remain around the 60,000 level. The latest market factors suggest that movements in AI-related stocks and semiconductor stocks will provide clues for the market going forward.