With the US FOMC meeting scheduled for 15-16 September, markets became more active in response to interest rate trends and movements in US equities. Developments in the major US stock indexes and long-term interest rates, the Japanese market's reaction, and individual stock movements were reported in succession.
In the US equity market, the Dow Jones Industrial Average closed 624 points higher on 3 September, as views spread that expectations for a rate hike would recede following a speech by Fed Governor Waller. On 4 September, however, stronger-than-expected employment data renewed rate hike expectations, and long-term interest rates fluctuated. The Dow Jones Industrial Average rose more than 680 points at one stage, but momentum slowed toward the close.
Against the backdrop of volatility in US markets, the Nikkei average fell on 3 September for the first time in 4 sessions, then closed 806 points higher on 4 September as buying spread to AI and semiconductor-related stocks. Long-term interest rates fell following Waller's remarks, and buying in domestic technology stocks followed gains in US equities. The Nikkei Prime Index also rebounded.
In Chinese markets, the Shanghai Composite posted a modest rebound on 3 September and edged lower on 4 September. Expectations for domestic policy and perceptions of measures to expand domestic demand affected share prices, with movements seen in sectors including financials and real estate.