US equities are expected to trade with the market watching long-term interest rate trends and the performance of major stocks ahead of the FOMC meeting on 15–16 September. In Japanese equities, cautious scrutiny of the ethical intervention by overseas short-term speculators is expected to continue.
The US equity market moved sharply from 9/3 to 9/4. On 9/3, the NY Dow extended its gains, rising $624, while buying spread across technology stocks, triggered by Snowflake’s strong earnings. On 9/4, however, long-term interest rates rose following strong employment data, and equities at one point fell moderately.
Against the backdrop of remarks by Federal Reserve officials, market attention focused on the FOMC monetary policy decision to be made at the meeting on 15–16 September. Expectations of a rate hike could strengthen again depending on long-term interest rate trends and inflation, and investors are watching closely for incoming data.
In the Japanese market, the Nikkei Average at one point extended its decline on 9/3, but on 9/4 buying progressed in AI and semiconductor-related stocks following gains in US equities, and the Nikkei Average ended up ¥806. Some have called for a cautious response to efforts by overseas short-term speculators to steer the Nikkei Average.
The Shanghai market alternated between modest rebounds and corrections over the period, with limited upside seen against a backdrop of uncertainty over the situation in the Middle East and US-China developments. Overall, changes in the international environment, centered on the US FOMC, are expected to affect the Japanese market as well.