The Nikkei 225 extended its rally on Thursday, hitting a new intraday high after the US Federal Reserve cut its key interest rate. The move provided fresh momentum for Tokyo’s benchmark, which has already been trading near record levels in recent weeks.
The index surged more than 600 points at one stage, closing 1.4% higher compared with Wednesday. Market participants favored semiconductor and export-related shares, anticipating that lower US rates would stimulate global demand. Analysts noted that strong foreign investor inflows have supported Japanese equities throughout September, making the Fed’s policy shift an additional tailwind for Tokyo stocks.
On Wall Street, the Dow Jones Industrial Average briefly jumped more than 500 points, also reaching a fresh intraday high. However, some of those gains were pared after Fed Chair Jerome Powell expressed caution regarding the pace of future rate cuts. The Dow ended the day 260 points higher at 46,018, while the Nasdaq and S&P 500 slipped slightly. For Tokyo investors, this mixed outcome underscored the need to track global monetary policy closely.
In the foreign exchange market, the US dollar initially dipped against the yen after the Fed’s decision, briefly touching the mid-145 level—its weakest point in two months—before rebounding to around 147. A softer yen generally benefits Japan’s exporters, many of which are constituents of the Nikkei 225, as overseas earnings rise when converted back to yen.
Market analysts expect the Nikkei 225 to stay sensitive to global central-bank moves and currency swings. If US growth stabilizes under lower rates, demand for Japanese exports could remain firm, supporting further gains. That said, uncertainties persist—particularly if inflation reaccelerates or if the Fed signals a pause in easing—and domestic data such as earnings and consumption will shape the path for Japan’s benchmark index. Overall, the outlook for the Nikkei 225 will hinge on the interplay between global policy signals and yen dynamics in the weeks ahead. Stay informed with the latest Forex trading news and analysis. Visit our website: https://fixiomarkets.com/en/prex-blogs
Nikkei 225 surged to a new intraday high after the US Federal Reserve cut rates, lifting Tokyo stocks and sparking forex volatility.
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