The Nikkei Average extended its advance on the 17th, as buying to cover short positions prevailed after the FOMC meeting. It closed at ¥64,136.25. After rising to an intraday high of ¥64,644, the market came under selling pressure and closed after falling as low as ¥63,825. The three major US indexes also rose, with the Japanese market appearing to take its cue from moves in the US market.
In the Japanese equity market, the Nikkei Average extended its advance, closing ¥213.25 higher than the previous day at ¥64,136.25. Against a backdrop of gains in after-hours trading, it opened at ¥64,644, but selling prevailed after the open, briefly pushing it down to ¥63,961. Buying to cover short positions then emerged, lifting the index to ¥64,483, but selling returned and drove it down to ¥63,943 by the end of the morning session. In the afternoon session, it opened at ¥64,179 and recorded the day's low of ¥63,825 at around 3 p.m., but buying returned in the closing auction, and it closed at ¥64,136.
In the US equity market, the three major indexes rose. The S&P 500 opened $79 higher than the previous day at $7,631, then came under selling pressure and briefly fell to $7,612, before rebounding toward the close and ending at $7,638. Buying in IT and consumer discretionary stocks, along with purchases of semiconductor-related stocks, lifted the market overall.
As trading continued above the previous day's closing levels, the market also responded to developments in US and European monetary policy and information related to the US presidential election. With the Bank of Japan's Monetary Policy Meeting results and Governor Ueda's press conference due shortly, investors are focused on assessing the BOJ's response as a key area of attention going forward.
Other points covered in the lower part of the report include the impact of developments in the Chinese market and energy-related news on the market on the 17th, as well as continued attention to movements in the crude oil market and long-term interest rates.