Bulls Take Control On Wall Street a Day After Fed's Lagging Rate Pivot

Barry Adams
17 Sep, 2026
New York City

Stocks rebounded in New York in early trading following a market sell-off after the Federal Reserve raised rates for the first time in three years. 

The S&P 500 Index increased 0.8%, and the tech-heavy Nasdaq Composite edged up 1.0% as investors recalibrated economic growth and inflation outlook. 

On Wednesday, the Federal Open Market Committee concluded its highly anticipated policy meeting by raising its benchmark interest rate by 0.25 percentage points. 

This decision represents a hawkish turn by the central bank as it aims to combat sticky consumer inflation and manage an economy increasingly influenced by geopolitical conflicts.

Bond yields remained in focus after the Federal Reserve raised interest rates for the first time since July 2023 amid persistent inflation.  

The Federal Reserve unanimously voted to raise its benchmark interest rate by 25 basis points, shifting monetary policy in response to persistent inflationary pressures and a tightening labor market. 

Headline inflation has hovered around 3.4%, driven by sticky shelter, food costs, and global economic disruptions.

Consumer price inflation stayed above the Fed's target rate for the 66th month in a row in August, as oil prices surged above $100 a barrel after the war on Iran entered the seventh month. 

The rate-setting committee raised the Fed funds rate range to between 3.75% and 4.0%, as the Fed struggled to lower inflation to its target rate of 2%.  

16 of 18 members of the committee indicated plans for at least one additional hike later this year, though they project holding rates steady throughout the following year despite inflation remaining above their long-term target.

Later today, weekly jobless claims and housing starts data could offer how elevated interest rates are affecting residential construction and labor market conditions. 

Equity investors remained unfazed by the Fed's latest rate hike after three years, and bull gained control amid expectations of higher profits and a continued boom in artificial intelligence infrastructure. 

U.S. Movers 

Generac Holdings soared 34.8% to $236.0 after the power company issued warrants to Amazon Inc. to acquire shares in the company. 

Generac issued warrants to acquire 1.69 million shares valued at $200.93 each. 

As part of the deal, Generac will provide Amazon with backup power generators for its data centers, with the initial purchase to total $2.4 billion in 2027 and 2028, according to a regulatory filing.     

Bulls Take Control On Wall Street a Day After Fed's Lagging Rate Pivot

Barry Adams
17 Sep, 2026
New York City

Stocks rebounded in New York in early trading following a market sell-off after the Federal Reserve raised rates for the first time in three years. 

The S&P 500 Index increased 0.8%, and the tech-heavy Nasdaq Composite edged up 1.0% as investors recalibrated economic growth and inflation outlook. 

On Wednesday, the Federal Open Market Committee concluded its highly anticipated policy meeting by raising its benchmark interest rate by 0.25 percentage points. 

This decision represents a hawkish turn by the central bank as it aims to combat sticky consumer inflation and manage an economy increasingly influenced by geopolitical conflicts.

Bond yields remained in focus after the Federal Reserve raised interest rates for the first time since July 2023 amid persistent inflation.  

The Federal Reserve unanimously voted to raise its benchmark interest rate by 25 basis points, shifting monetary policy in response to persistent inflationary pressures and a tightening labor market. 

Headline inflation has hovered around 3.4%, driven by sticky shelter, food costs, and global economic disruptions.

Consumer price inflation stayed above the Fed's target rate for the 66th month in a row in August, as oil prices surged above $100 a barrel after the war on Iran entered the seventh month. 

The rate-setting committee raised the Fed funds rate range to between 3.75% and 4.0%, as the Fed struggled to lower inflation to its target rate of 2%.  

16 of 18 members of the committee indicated plans for at least one additional hike later this year, though they project holding rates steady throughout the following year despite inflation remaining above their long-term target.

Later today, weekly jobless claims and housing starts data could offer how elevated interest rates are affecting residential construction and labor market conditions. 

Equity investors remained unfazed by the Fed's latest rate hike after three years, and bull gained control amid expectations of higher profits and a continued boom in artificial intelligence infrastructure. 

U.S. Movers 

Generac Holdings soared 34.8% to $236.0 after the power company issued warrants to Amazon Inc. to acquire shares in the company. 

Generac issued warrants to acquire 1.69 million shares valued at $200.93 each. 

As part of the deal, Generac will provide Amazon with backup power generators for its data centers, with the initial purchase to total $2.4 billion in 2027 and 2028, according to a regulatory filing.     

NY Update

Barry Adams
17 Sep, 2026
New York City

Stocks rebounded in New York in early trading following a market sell-off after the Federal Reserve raised rates for the first time in three years. 

The S&P 500 Index increased 0.8%, and the tech-heavy Nasdaq Composite edged up 1.0% as investors recalibrated economic growth and inflation outlook. 

On Wednesday, the Federal Open Market Committee concluded its highly anticipated policy meeting by raising its benchmark interest rate by 0.25 percentage points. 

This decision represents a hawkish turn by the central bank as it aims to combat sticky consumer inflation and manage an economy increasingly influenced by geopolitical conflicts.

Bond yields remained in focus after the Federal Reserve raised interest rates for the first time since July 2023 amid persistent inflation.  

The Federal Reserve unanimously voted to raise its benchmark interest rate by 25 basis points, shifting monetary policy in response to persistent inflationary pressures and a tightening labor market. 

Headline inflation has hovered around 3.4%, driven by sticky shelter, food costs, and global economic disruptions.

Consumer price inflation stayed above the Fed's target rate for the 66th month in a row in August, as oil prices surged above $100 a barrel after the war on Iran entered the seventh month. 

The rate-setting committee raised the Fed funds rate range to between 3.75% and 4.0%, as the Fed struggled to lower inflation to its target rate of 2%.  

16 of 18 members of the committee indicated plans for at least one additional hike later this year, though they project holding rates steady throughout the following year despite inflation remaining above their long-term target.

Later today, weekly jobless claims and housing starts data could offer how elevated interest rates are affecting residential construction and labor market conditions. 

Equity investors remained unfazed by the Fed's latest rate hike after three years, and bull gained control amid expectations of higher profits and a continued boom in artificial intelligence infrastructure. 

U.S. Movers 

Generac Holdings soared 34.8% to $236.0 after the power company issued warrants to Amazon Inc. to acquire shares in the company. 

Generac issued warrants to acquire 1.69 million shares valued at $200.93 each. 

As part of the deal, Generac will provide Amazon with backup power generators for its data centers, with the initial purchase to total $2.4 billion in 2027 and 2028, according to a regulatory filing.     

Japan and U.S. Rate Decisions Kept Focus On Bond Yields and Yen Level

Akira Ito
17 Sep, 2026
Tokyo

The Bank of Japan lifted rates by 25 basis points, as widely anticipated, and revised its outlook for inflation and economic growth.

Japan's indexes advanced on Thursday, extending gains from the previous session as investors reviewed rate decisions from major central banks. 

The Nikkei 225 stock average rose 0.3%, the broader Topix advanced 0.8%, and the Japanese yen hovered at 156.09 against the U.S. dollar following the U.S. Fed's rate hike. 

Bond yields remained in focus after the Federal Reserve raised interest rates for the first time since July 2023 amid persistent inflation.  

The Federal Reserve unanimously voted to raise its benchmark interest rate by 25 basis points, shifting monetary policy in response to persistent inflationary pressures and a tightening labor market. 

The rate-setting committee raised the Fed funds rate range to between 3.75% and 4.0%, as the Fed struggled to lower inflation to its target rate of 2%.  

16 of 18 members of the committee indicated plans for at least one additional hike later this year, though they project holding rates steady throughout the following year despite inflation remaining above their long-term target.

The yield on 10-year Japanese government bonds rose to 2.99%, a three-decade high as the Bank of Japan raised rates by 25 basis points to 1.25%. 

Japan's central bank is expected to follow up with another rate hike in January, and policymakers are likely to lift rates by 25 basis points again. 

Meanwhile, markets continued to assess Japan's fiscal outlook amid Prime Minister Takaichi's plans for substantial government spending and tax cuts. 

The Brent crude oil price held steady at $105.85 per barrel, amid expectations that crude flows through Saudi Arabia's East-West pipeline could resume soon, easing pressure on Japan's oil-dependent economy. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.3% to 64,130.75, and the broader Topix advanced 0.8% to 4,093.14.

AI- and semiconductor-linked stocks traded higher in broad-based gains in Tokyo's trading on Thursday. 

Tokyo Electron decreased 1.7% to ¥50,810.0, Advantest Corp. fell 1.1% to ¥30,360.0, SoftBank Group edged up 1.4% to ¥6,275.0, and Lasertec Corp. added 1.1% to ¥36,140.0. 

Japan and U.S. Rate Decisions Kept Focus On Bond Yields and Yen Level

Akira Ito
17 Sep, 2026
Tokyo

The Bank of Japan lifted rates by 25 basis points, as widely anticipated, and revised its outlook for inflation and economic growth.

Japan's indexes advanced on Thursday, extending gains from the previous session as investors reviewed rate decisions from major central banks. 

The Nikkei 225 stock average rose 0.3%, the broader Topix advanced 0.8%, and the Japanese yen hovered at 156.09 against the U.S. dollar following the U.S. Fed's rate hike. 

Bond yields remained in focus after the Federal Reserve raised interest rates for the first time since July 2023 amid persistent inflation.  

The Federal Reserve unanimously voted to raise its benchmark interest rate by 25 basis points, shifting monetary policy in response to persistent inflationary pressures and a tightening labor market. 

The rate-setting committee raised the Fed funds rate range to between 3.75% and 4.0%, as the Fed struggled to lower inflation to its target rate of 2%.  

16 of 18 members of the committee indicated plans for at least one additional hike later this year, though they project holding rates steady throughout the following year despite inflation remaining above their long-term target.

The yield on 10-year Japanese government bonds rose to 2.99%, a three-decade high as the Bank of Japan raised rates by 25 basis points to 1.25%. 

Japan's central bank is expected to follow up with another rate hike in January, and policymakers are likely to lift rates by 25 basis points again. 

Meanwhile, markets continued to assess Japan's fiscal outlook amid Prime Minister Takaichi's plans for substantial government spending and tax cuts. 

The Brent crude oil price held steady at $105.85 per barrel, amid expectations that crude flows through Saudi Arabia's East-West pipeline could resume soon, easing pressure on Japan's oil-dependent economy. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.3% to 64,130.75, and the broader Topix advanced 0.8% to 4,093.14.

AI- and semiconductor-linked stocks traded higher in broad-based gains in Tokyo's trading on Thursday. 

Tokyo Electron decreased 1.7% to ¥50,810.0, Advantest Corp. fell 1.1% to ¥30,360.0, SoftBank Group edged up 1.4% to ¥6,275.0, and Lasertec Corp. added 1.1% to ¥36,140.0. 

Japan and U.S. Rate Decisions Kept Focus On Bond Yields and Yen Level

Akira Ito
17 Sep, 2026
Tokyo

Japan's indexes advanced on Thursday, extending gains from the previous session as investors reviewed rate decisions from major central banks. 

The Nikkei 225 stock average rose 0.3%, the broader Topix advanced 0.8%, and the Japanese yen hovered at 156.09 against the U.S. dollar following the U.S. Fed's rate hike. 

Bond yields remained in focus after the Federal Reserve raised interest rates for the first time since July 2023 amid persistent inflation.  

The Federal Reserve unanimously voted to raise its benchmark interest rate by 25 basis points, shifting monetary policy in response to persistent inflationary pressures and a tightening labor market. 

The rate-setting committee raised the Fed funds rate range to between 3.75% and 4.0%, as the Fed struggled to lower inflation to its target rate of 2%.  

16 of 18 members of the committee indicated plans for at least one additional hike later this year, though they project holding rates steady throughout the following year despite inflation remaining above their long-term target.

The yield on 10-year Japanese government bonds rose to 2.99%, a three-decade high as the Bank of Japan raised rates by 25 basis points to 1.25%. 

Japan's central bank is expected to follow up with another rate hike in January, and policymakers are likely to lift rates by 25 basis points again. 

Meanwhile, markets continued to assess Japan's fiscal outlook amid Prime Minister Takaichi's plans for substantial government spending and tax cuts. 

The Brent crude oil price held steady at $105.85 per barrel, amid expectations that crude flows through Saudi Arabia's East-West pipeline could resume soon, easing pressure on Japan's oil-dependent economy. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.3% to 64,130.75, and the broader Topix advanced 0.8% to 4,093.14.

AI- and semiconductor-linked stocks traded higher in broad-based gains in Tokyo's trading on Thursday. 

Tokyo Electron decreased 1.7% to ¥50,810.0, Advantest Corp. fell 1.1% to ¥30,360.0, SoftBank Group edged up 1.4% to ¥6,275.0, and Lasertec Corp. added 1.1% to ¥36,140.0. 

China's Indexes Edged Lower as Investors Adjust to Rate Decisions from Major Central Banks

Li Chen
17 Sep, 2026
Hong Kong

China's indexes struggled to advance on Thursday ahead of high-level U.S.-China trade talks this weekend. 

The Hang Seng Index decreased more than 1%, and the mainland-focused CSI 300 Index eased 0.3%. 

U.S. Secretary of State Scott Bessent is scheduled to meet China's Vice Premier He Lifeng for final preparatory discussions before the September 24 summit between the leaders of the U.S. and China.

The meeting in Washington, D.C., is expected to improve trade relations between the two countries; however, investors remained cautious amid lingering uncertainties over tariffs, sanctions, and geopolitical tensions. 

Bond yields remained in focus after the Federal Reserve raised interest rates for the first time since July 2023 amid persistent inflation.  

The Federal Reserve unanimously voted to raise its benchmark interest rate by 25 basis points, shifting monetary policy in response to persistent inflationary pressures and a tightening labor market. 

The rate-setting committee raised the Fed funds rate range to between 3.75% and 4.0%, as the Fed struggled to lower inflation to its target rate of 2%.  

16 of 18 members of the committee indicated plans for at least one additional hike later this year, though they project holding rates steady throughout the following year despite inflation remaining above their long-term target.

China lowered its holdings of U.S. Treasuries to an 18-year low, as overall holdings by foreign countries for a second consecutive month amid deepening worries over the level and sustainability of the U.S. government debt. 

China’s Treasury debt holdings fell to $618 billion in July from $633.4 billion in June, data released by the US Treasury Department showed on Wednesday.

Meanwhile, overall foreign holdings of US Treasuries dropped to $9.25 trillion in July, down from $9.3 trillion in June, the U.S. Treasury Department said.

Official data showed the People’s Bank of China increased its bullion holdings for the 22nd month in a row in August, lifting the total to 76.73 million troy ounces.

China Indexes and Stocks 

The Hang Seng Index decreased 1.1% to 24,448.27, and the mainland-focused CSI 300 Index decreased 0.3% to 4,468.12. 

Alibaba Group decreased 1.3% to HK $104.80, Tencent Holdings dropped 1.7% to HK $426.0, Luxshare Precision Industry fell 2.2% to HK $57.20, and Zhongji Innolight eased 0.2% to HK $1,134.0. 

China's Indexes Edged Lower as Investors Adjust to Rate Decisions from Major Central Banks

Li Chen
17 Sep, 2026
Hong Kong

China's indexes struggled to advance on Thursday ahead of high-level U.S.-China trade talks this weekend. 

The Hang Seng Index decreased more than 1%, and the mainland-focused CSI 300 Index eased 0.3%. 

U.S. Secretary of State Scott Bessent is scheduled to meet China's Vice Premier He Lifeng for final preparatory discussions before the September 24 summit between the leaders of the U.S. and China.

The meeting in Washington, D.C., is expected to improve trade relations between the two countries; however, investors remained cautious amid lingering uncertainties over tariffs, sanctions, and geopolitical tensions. 

Bond yields remained in focus after the Federal Reserve raised interest rates for the first time since July 2023 amid persistent inflation.  

The Federal Reserve unanimously voted to raise its benchmark interest rate by 25 basis points, shifting monetary policy in response to persistent inflationary pressures and a tightening labor market. 

The rate-setting committee raised the Fed funds rate range to between 3.75% and 4.0%, as the Fed struggled to lower inflation to its target rate of 2%.  

16 of 18 members of the committee indicated plans for at least one additional hike later this year, though they project holding rates steady throughout the following year despite inflation remaining above their long-term target.

China lowered its holdings of U.S. Treasuries to an 18-year low, as overall holdings by foreign countries for a second consecutive month amid deepening worries over the level and sustainability of the U.S. government debt. 

China’s Treasury debt holdings fell to $618 billion in July from $633.4 billion in June, data released by the US Treasury Department showed on Wednesday.

Meanwhile, overall foreign holdings of US Treasuries dropped to $9.25 trillion in July, down from $9.3 trillion in June, the U.S. Treasury Department said.

Official data showed the People’s Bank of China increased its bullion holdings for the 22nd month in a row in August, lifting the total to 76.73 million troy ounces.

China Indexes and Stocks 

The Hang Seng Index decreased 1.1% to 24,448.27, and the mainland-focused CSI 300 Index decreased 0.3% to 4,468.12. 

Alibaba Group decreased 1.3% to HK $104.80, Tencent Holdings dropped 1.7% to HK $426.0, Luxshare Precision Industry fell 2.2% to HK $57.20, and Zhongji Innolight eased 0.2% to HK $1,134.0. 

With Fed's Credibility at Stake, FOMC Finally Hiked Rates After Three Years

Barry Adams
16 Sep, 2026
New York City

U.S. stocks traded around the flatline on Wednesday as investors awaited the Fed's rate decisions later today. 

The S&P 500 Index increased 0.2%, and the tech-focused Nasdaq Composite edged higher by 0.3% ahead of the Fed's rate announcements and outlook for the U.S. economy and inflation. 

Bond yields remained in focus after the Federal Reserve raised interest rates for the first time since July 2023 amid persistent inflation.  

The Federal Reserve unanimously voted to raise its benchmark interest rate by 25 basis points, shifting monetary policy in response to persistent inflationary pressures and a tightening labor market. 

The rate-setting committee raised the Fed funds rate range to between 3.75% and 4.0%, as the Fed struggled to lower inflation to its target rate of 2%.  

16 of 18 members of the committee indicated plans for at least one additional hike later this year, though they project holding rates steady throughout the following year despite inflation remaining above their long-term target.

Treasury yields have been rising on the expectation of higher prices in the economy, driven by the surging costs of fuel and energy products. 

The yield on 10-year U.S. Treasury notes continued to stay above 5% for the third consecutive session amid rising expectations of a rate hike at the end of a two-day meeting later today. 

The yield on 30-year U.S. Treasury bonds held near 5.37%. 

Moreover, inflation has stayed above the Fed's target rate of 2% for more than 65 months in a row as of August, and despite the Fed's tough talks, policymakers have done little to quell the resurgent inflation. 

West Texas crude oil price decreased 2.2% to $103.42 per barrel, and international Brent crude declined 1.5% to $107.40 as Saudi Arabia struggled to rebuild its pipeline infrastructure for shipments through the Red Sea.  

U.S. diesel prices hit $6 a gallon on Friday for the first time, amid ongoing supply disruptions caused by the U.S. and Israel's attack on Iran since February and the four-year war between Ukraine and Russia.   

U.S. Movers 

Intel Corp. increased 3.6% to $100.44, and SK Hynix gained 3.4% to $180.87, as two companies are reportedly in a discussion to fabricate memory chips in the U.S. 

SK Hynix is in early discussion with Intel to fabricate its memory chips at foundries owned by Intel in the U.S., according to a report by Reuters. 

With Fed's Credibility at Stake, Fed May Finally Hike Rates After Three Years

Barry Adams
16 Sep, 2026
New York City

U.S. stocks traded around the flatline on Wednesday as investors awaited the Fed's rate decisions later today. 

The S&P 500 Index increased 0.2%, and the tech-focused Nasdaq Composite edged higher by 0.3% ahead of the Fed's rate announcements and outlook for the U.S. economy and inflation. 

Market participants are divided over the Fed's rate decisions, as the central bank's credibility is at stake if policymakers ignore the recent rise in inflation. 

The Federal Reserve could raise the benchmark interest rate by a quarter-point, pushing the target range to 3.75%–4.0%, marking the first rate increase since July 2023. 

Treasury yields have been rising on the expectation of higher prices in the economy, driven by the surging costs of fuel and energy products. 

The yield on 10-year U.S. Treasury notes continued to stay above 5% for the third consecutive session amid rising expectations of a rate hike at the end of a two-day meeting later today. 

The yield on 30-year U.S. Treasury bonds held near 5.37%. 

Moreover, inflation has stayed above the Fed's target rate of 2% for more than 65 months in a row as of August, and despite the Fed's tough talks, policymakers have done little to quell the resurgent inflation. 

West Texas crude oil price decreased 2.2% to $103.42 per barrel, and international Brent crude declined 1.5% to $107.40 as Saudi Arabia struggled to rebuild its pipeline infrastructure for shipments through the Red Sea.  

U.S. diesel prices hit $6 a gallon on Friday for the first time, amid ongoing supply disruptions caused by the U.S. and Israel's attack on Iran since February and the four-year war between Ukraine and Russia.   

U.S. Movers 

Intel Corp. increased 3.6% to $100.44, and SK Hynix gained 3.4% to $180.87, as two companies are reportedly in a discussion to fabricate memory chips in the U.S. 

SK Hynix is in early discussion with Intel to fabricate its memory chips at foundries owned by Intel in the U.S., according to a report by Reuters. 

High Energy Prices Deepened Japan's Trade Deficit Fourth Consecutive Month In August

Akira Ito
16 Sep, 2026
Tokyo

Japan's benchmark indexes lacked direction ahead of rate decisions from major central banks later in the week. 

The Nikkei 225 Stock Average increased 0.6%, the broader Topix advanced 0.7%, and the Japanese yen weakened to 155.28 against the U.S. dollar. 

The U.S. Federal Reserve is scheduled to announce its rate decisions later in the day, as policymakers review the persistent inflation over the last five years. 

The Bank of Japan is scheduled to announce policy decisions and estimates of inflation and economic growth on Friday, and investors are widely anticipating rate hikes. 

Investors are anticipating a rate hike of 25 basis points, and policymakers are set to revise higher inflation and economic growth estimates. 

Japan's Trade Deficit Widened Fourth Consecutive Month in August

Japan's exports rose at a faster-than-estimated pace in August, but the international trade balance turned to a deficit for the fourth consecutive month. 

Exports soared 19.3% to 10.0 trillion yen and advanced for the 12th month in a row, lifted by robust demand for AI-related chips and semiconductor equipment, despite risks from supply chain disruptions due to the Middle East conflict. 

Exports to China increased by 20.6% compared to a year ago, exports to the U.S. rose by 24.9%, exports to the EU grew by 11%, and exports to ASEAN surged by 22.2%. 

Semiconductor exports to China remained firm amid the sustained demand for artificial intelligence infrastructure, while exports of vehicles to the U.S. also increased.

By category, exports increased across all major components, led by a 31.5% rise in electrical machinery and a 7.2% advance in transportation equipment, mainly on motor vehicles. 

Imports soared 28.5% to 11.2 trillion yen, and crude oil shipments soared 58.7% to 1.2 trillion yen.     

The yen-denominated price of crude oil per kiloliter rose 53.1%, reflecting a weaker yen and a surge in international prices. 

Crude oil imports through the Strait of Hormuz decreased 30.9% as the shipments through the critical waterways remained disrupted for the seventh consecutive month. 

Japan's U.S. crude oil imports soared sevenfold from a year ago to 3.66 million kiloliters, as the U.S. pressured Japan to diversify its energy sources.   

Japan's international trade deficit soared to 1.1 trillion yen, or $7.1 billion, from 294.1 billion yen, marking the fourth consecutive month of deficit and the largest since January.   

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.6% to 63,811.13, and the broader Topix advanced 0.7% to 4,065.27. 

Technology stocks traded mixed as investors debated the longevity of the sustained demand for AI-related products. 

Kioxia Holdings declined 2.6% to ¥50,400.0, Tokyo Electron increased 1.4% to ¥51,420.0, Advantest Corp. rose 0.6% to ¥30,340.0, and Taiyo Yuden Company gained 1.6% to ¥9,306.0. 

High Energy Prices Deepened Japan's Trade Deficit Fourth Consecutive Month In August

Akira Ito
16 Sep, 2026
Tokyo

Japan's benchmark indexes lacked direction ahead of rate decisions from major central banks later in the week. 

The Nikkei 225 Stock Average increased 0.6%, the broader Topix advanced 0.7%, and the Japanese yen weakened to 155.28 against the U.S. dollar. 

The U.S. Federal Reserve is scheduled to announce its rate decisions later in the day, as policymakers review the persistent inflation over the last five years. 

The Bank of Japan is scheduled to announce policy decisions and estimates of inflation and economic growth on Friday, and investors are widely anticipating rate hikes. 

Investors are anticipating a rate hike of 25 basis points, and policymakers are set to revise higher inflation and economic growth estimates. 

Japan's Trade Deficit Widened Fourth Consecutive Month in August

Japan's exports rose at a faster-than-estimated pace in August, but the international trade balance turned to a deficit for the fourth consecutive month. 

Exports soared 19.3% to 10.0 trillion yen and advanced for the 12th month in a row, lifted by robust demand for AI-related chips and semiconductor equipment, despite risks from supply chain disruptions due to the Middle East conflict. 

Exports to China increased by 20.6% compared to a year ago, exports to the U.S. rose by 24.9%, exports to the EU grew by 11%, and exports to ASEAN surged by 22.2%. 

Semiconductor exports to China remained firm amid the sustained demand for artificial intelligence infrastructure, while exports of vehicles to the U.S. also increased.

By category, exports increased across all major components, led by a 31.5% rise in electrical machinery and a 7.2% advance in transportation equipment, mainly on motor vehicles. 

Imports soared 28.5% to 11.2 trillion yen, and crude oil shipments soared 58.7% to 1.2 trillion yen.     

The yen-denominated price of crude oil per kiloliter rose 53.1%, reflecting a weaker yen and a surge in international prices. 

Crude oil imports through the Strait of Hormuz decreased 30.9% as the shipments through the critical waterways remained disrupted for the seventh consecutive month. 

Japan's U.S. crude oil imports soared sevenfold from a year ago to 3.66 million kiloliters, as the U.S. pressured Japan to diversify its energy sources.   

Japan's international trade deficit soared to 1.1 trillion yen, or $7.1 billion, from 294.1 billion yen, marking the fourth consecutive month of deficit and the largest since January.   

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.6% to 63,811.13, and the broader Topix advanced 0.7% to 4,065.27. 

Technology stocks traded mixed as investors debated the longevity of the sustained demand for AI-related products. 

Kioxia Holdings declined 2.6% to ¥50,400.0, Tokyo Electron increased 1.4% to ¥51,420.0, Advantest Corp. rose 0.6% to ¥30,340.0, and Taiyo Yuden Company gained 1.6% to ¥9,306.0. 

High Energy Prices Deepened Japan's Trade Deficit Fourth Consecutive Month In August

Akira Ito
16 Sep, 2026
Tokyo

Japan's benchmark indexes lacked direction ahead of rate decisions from major central banks later in the week. 

The Nikkei 225 Stock Average increased 0.6%, the broader Topix advanced 0.7%, and the Japanese yen weakened to 155.28 against the U.S. dollar. 

The U.S. Federal Reserve is scheduled to announce its rate decisions later in the day, as policymakers review the persistent inflation over the last five years. 

The Bank of Japan is scheduled to announce policy decisions and estimates of inflation and economic growth on Friday, and investors are widely anticipating rate hikes. 

Investors are anticipating a rate hike of 25 basis points, and policymakers are set to revise higher inflation and economic growth estimates. 

Japan's Trade Deficit Widened Fourth Consecutive Month in August

Japan's exports rose at a faster-than-estimated pace in August, but the international trade balance turned to a deficit for the fourth consecutive month. 

Exports soared 19.3% to 10.0 trillion yen and advanced for the 12th month in a row, lifted by robust demand for AI-related chips and semiconductor equipment, despite risks from supply chain disruptions due to the Middle East conflict. 

Exports to China increased by 20.6% compared to a year ago, exports to the U.S. rose by 24.9%, exports to the EU grew by 11%, and exports to ASEAN surged by 22.2%. 

Semiconductor exports to China remained firm amid the sustained demand for artificial intelligence infrastructure, while exports of vehicles to the U.S. also increased.

By category, exports increased across all major components, led by a 31.5% rise in electrical machinery and a 7.2% advance in transportation equipment, mainly on motor vehicles. 

Imports soared 28.5% to 11.2 trillion yen, and crude oil shipments soared 58.7% to 1.2 trillion yen.     

The yen-denominated price of crude oil per kiloliter rose 53.1%, reflecting a weaker yen and a surge in international prices. 

Crude oil imports through the Strait of Hormuz decreased 30.9% as the shipments through the critical waterways remained disrupted for the seventh consecutive month. 

Japan's U.S. crude oil imports soared sevenfold from a year ago to 3.66 million kiloliters, as the U.S. pressured Japan to diversify its energy sources.   

Japan's international trade deficit soared to 1.1 trillion yen, or $7.1 billion, from 294.1 billion yen, marking the fourth consecutive month of deficit and the largest since January.   

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.6% to 63,811.13, and the broader Topix advanced 0.7% to 4,065.27. 

Technology stocks traded mixed as investors debated the longevity of the sustained demand for AI-related products. 

Kioxia Holdings declined 2.6% to ¥50,400.0, Tokyo Electron increased 1.4% to ¥51,420.0, Advantest Corp. rose 0.6% to ¥30,340.0, and Taiyo Yuden Company gained 1.6% to ¥9,306.0. 

U.S.-China Trade Relations Surged Back Into Focus Ahead of Washington Summit Next Week

Li Chen
16 Sep, 2026
Hong Kong

China's indexes lacked direction amid heightened geopolitical tensions and growing skepticism over the viability of a stable trade agreement between the U.S. and China. 

The Hang Seng Index decreased a fraction, and the CSI 300 Index edged up 0.7% as trade negotiators prepare to meet this week ahead of the scheduled meeting between the leaders of two nations on September 24 in Washington, D.C.

U.S. Treasury Secretary Scott Bessent and China's Vice Premier He Lifeng are scheduled to meet this weekend, and investors are hoping that two sides could agree on a framework to lower tariffs and ease trade barriers. 

However, despite signs of progress, uncertainties remained high amid the unpredictable nature of the U.S. president and shifting priorities of the Trump administration. 

Traders focused on escalating tensions in the Middle East, as Iran-backed Houthi rebels retained their hold on the recently captured islands in the Red Sea. 

The Brent crude oil price edged down 0.7% to $107.95 a barrel as key Saudi infrastructure to ship oil through the Red Sea is likely to remain closed for at least three weeks. 

China Indexes and Stocks 

The Hang Seng Index decreased 0.04% to 24,656.90, and the mainland-focused CSI 300 Index edged up 0.7% to 4,479.55.

Luxshare Precision Industry increased 5% to HK $59.0, Zhongji Innolight advanced 7.8% to $1,170.0, and CATL declined 3.3% to $498.80. 

U.S.-China Trade Relations Surged Back Into Focus Ahead of Crucial Summit In Washington Next Week

Li Chen
16 Sep, 2026
Hong Kong

China's indexes lacked direction amid heightened geopolitical tensions and growing skepticism over the viability of a stable trade agreement between the U.S. and China. 

The Hang Seng Index decreased a fraction, and the CSI 300 Index edged up 0.7% as trade negotiators prepare to meet this week ahead of the scheduled meeting between the leaders of two nations on September 24 in Washington, D.C.

U.S. Treasury Secretary Scott Bessent and China's Vice Premier He Lifeng are scheduled to meet this weekend, and investors are hoping that two sides could agree on a framework to lower tariffs and ease trade barriers. 

However, despite signs of progress, uncertainties remained high amid the unpredictable nature of the U.S. president and shifting priorities of the Trump administration. 

Traders focused on escalating tensions in the Middle East, as Iran-backed Houthi rebels retained their hold on the recently captured islands in the Red Sea. 

The Brent crude oil price edged down 0.7% to $107.95 a barrel as key Saudi infrastructure to ship oil through the Red Sea is likely to remain closed for at least three weeks. 

China Indexes and Stocks 

The Hang Seng Index decreased 0.04% to 24,656.90, and the mainland-focused CSI 300 Index edged up 0.7% to 4,479.55.

Luxshare Precision Industry increased 5% to HK $59.0, Zhongji Innolight advanced 7.8% to $1,170.0, and CATL declined 3.3% to $498.80.