The Nikkei Average opened 530 yen higher, supported by buying in semiconductor and AI-related stocks. Market sentiment following the sharp decline in U.S. stocks and interest-rate trends after the FOMC decision are in focus.
The Nikkei Stock Average opened higher for a second straight session in the Tokyo market on the 17th and is trading 530 yen above the previous close. Although gains proved difficult to extend after the open, semiconductor stocks and AI-related shares provided support. The rise in the SOX Index in the previous U.S. session also encouraged buying at the open.
In the foreign exchange market, the yen weakened and the dollar strengthened to around ¥155.90 per dollar, prompting buying on expectations that the move would support earnings outlooks for exporters. Crude oil futures moved steadily, helping bolster overall sentiment.
Meanwhile, all three major U.S. stock indexes fell in the previous session. U.S. long-term interest rates rose following the FOMC's decision to raise rates further, weighing on sentiment in overseas markets. The Bank of Japan's Monetary Policy Meeting is scheduled to announce its decision and hold the governor's press conference on the 18th, and some investors are waiting to assess the details.
By individual stock, semiconductor and AI-related issues attracted buying, while profit-taking was also seen in domestic-demand and financial stocks. Continued yen weakness could provide a tailwind for export-related stocks, but stable oil prices are limiting the upside for energy-related stocks.