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Nikkei Climbs 43.87 Points as Fed Rate Hike Stabilizes Sentiment

By Markets Desk · 2026-09-17 · 1 min read
A view of the Tokyo skyline with the Tokyo Tower visible in the distance under a clear blue sky
Illustration: Tradingbird

Tokyo equities rose Thursday morning following the Federal Reserve's expected interest rate increase. The move reduced uncertainty regarding the global economic outlook for Japanese investors.

Nikkei Average posts modest gain

The 225-issue Nikkei Stock Average increased by 43.87 points. This represents a 0.07 percent rise from the previous session. The index closed the morning session at 63,966.87 levels. The broader TOPIX index showed stronger performance. It gained 29.34 points to reach 4,091.06. This marks a 0.72 percent increase for the broader market gauge. Most sectors recorded positive movement during the trading hours.

Dollar trades in lower 156 yen range

The U.S. dollar traded in the lower 156 yen range in Tokyo. At noon, the exchange rate stood at 156.21-22 yen. This was a slight weakening from 156.27-37 yen in New York. The euro was quoted at 178.99-179.00 yen per dollar. The dollar-to-euro rate was 1.1457-1458. Market participants expected the interest rate gap between Japan and the United States to widen. The Federal Reserve hinted at the possibility of another rate hike in the future.

Sector rotation limits benchmark upside

Game and medical stocks led the gains. These sectors had lagged behind recent artificial intelligence and semiconductor rallies. Falling West Texas Intermediate crude oil futures also supported market sentiment. Selling pressure on AI and chip-related shares limited the Nikkei's rise. Interest rate-sensitive stocks struggled to find upward momentum. Investors awaited clarity on the Bank of Japan's policy outlook. The central bank began its policy meeting later on Thursday. According to GN auto markets/indices: stock index data, dealer sentiment remained cautious regarding the immediate future of the benchmark index.

Based on reporting by mainichi.jp, compiled by the Tradingbird desk.

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