As expectations for a U.S. rate hike receded, buying emerged in AI and semiconductor stocks and bank stocks in the Tokyo market on 4 September, sending the Nikkei 225 sharply higher. The focus is on 3 stocks showing strong first-quarter progress in the areas of physical AI, megabanks and IP-related stocks.
In the U.S. market on 3 September, comments by FRB Governor Waller supporting keeping interest rates unchanged were reported, and were taken as indicating that expectations for a rate hike had receded. Against this backdrop, the market showed signs of increased risk appetite.
In the Tokyo market on 4 September, buying on valuation grounds emerged in major AI- and semiconductor-related stocks and bank stocks, and the Nikkei 225 rebounded sharply from the previous day to close at ¥65,020.94.
There is a view that trading may be subdued next week ahead of monetary policy decision events in both Japan and the U.S. There have also been reports that a 0.25% rate hike in Japan is expected to be priced in.