The Nikkei 225 is expected to trade erratically in Tokyo on the 16th, with higher U.S. crude oil prices and interest rates weighing on investor sentiment against a backdrop of falling U.S. stocks. Position-adjustment selling is also expected ahead of the FOMC announcement in the early hours of the 17th Japan time.
The Nikkei 225 traded erratically in the Tokyo stock market on the 16th, fluctuating around almost the same level as the previous day. The market was increasingly characterized by a lack of trading catalysts against a backdrop of declines in U.S. stocks.
The background included the impact of higher U.S. crude oil prices and interest rates, and there were indications that the decline in U.S. stocks could spill over into the domestic market. There was also a view that position-adjustment selling would be more likely ahead of the FOMC announcement Japan time.
Buying to secure rights to interim dividends was cited as a factor that could support the market, and the Nikkei 225 was expected to trade in a range from the latter part of the ¥63,000s to around ¥64,000.
In conclusion, the Nikkei 225 could fluctuate around the previous day's closing level, with the extent of the movement depending on developments in U.S. markets and the FOMC outcome.