In the Japanese market on the 14th, the Nikkei Average rebounded, supported by expectations that prospects for aggressive U.S. rate hikes would ease. The yen traded in the low ¥158 range, while higher oil prices and bond market developments shaped the outlook.
The Nikkei Average rebounded on the 14th. The market was supported by factors easing concerns over the strength of corporate earnings and the interest rate outlooks in Japan and the United States. The yen traded in the low ¥158 range against the dollar, making foreign exchange movements another focus for the market.
Federal Reserve Bank of New York President Williams maintained his view that one more rate hike this year would be appropriate, while saying that he did not currently believe an additional rate hike in 2027 was necessary. This fueled market expectations that a major increase in interest rates could be avoided.
Investors became more convinced that corporate earnings announcements would support the market, backed by solid business performance. At the same time, persistently high international crude oil prices remained a concern, with oil-related developments viewed as a market risk factor.
Selling continued to dominate the bond market, while volatility was seen in both yen appreciation and yen depreciation phases. Overall, the market was seeking direction against the backdrop of expectations that a sharp rise in U.S. interest rates would be avoided.