The U.S. FOMC is expected to begin meeting on the 15th, with speculation that it may forgo a rate hike. The Nikkei Average fell approximately ¥1,000 last week, leaving this week's market direction dependent on monetary policy developments.
The Nikkei Average is said to have fallen approximately ¥1,000 over the course of last week.
Shingo Ide (井出 真吾) of NLI Research Institute said that escalating tensions in the Middle East, rising interest rates in Japan and the United States, and growing expectations of rate hikes put downward pressure on stock prices.
In the United States, the FOMC will meet on the 15th local time, and attention is focused on whether the Federal Reserve will decide to raise interest rates. As expectations that it will hold off on a rate hike are also being discussed, there is a view that concerns over its independence could become a source of concern in the market.
In Japan, the Bank of Japan is expected to hold a monetary policy meeting beginning on the 17th, with a policy rate hike anticipated.