With the broader market showing signs of recovery, buying focused on small-cap stocks with strong earnings, driven by growth expectations for AI semiconductors, finance and defense.
Following a rebound in US equities on 18 September on lower oil prices and declining long-term interest rates, the Tokyo market also opened higher for a third consecutive session, led by buying in AI semiconductor-related and nonferrous metal stocks.
The Bank of Japan announced a 0.25% interest-rate hike at its Monetary Policy Meeting, but dissenting views among board members fueled expectations that the pace of future hikes would be gradual. The yen weakened against the dollar, and the Nikkei Stock Average moved higher in the afternoon session. It closed sharply above the previous day's level at ¥65,018.95, returning to the 30,000 range for the first time in 3 sessions.
Next week, the US-China summit on 24–25 September and US and Japan monetary policy events are expected to attract market attention and potentially spur activity. The projected range for the Nikkei was given as ¥63,500 to ¥66,500.
Stock analysis is expected to focus on small-cap stocks with growth prospects in areas such as AI semiconductors, finance and defense.