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.