{"id":15098,"date":"2024-09-24T05:39:26","date_gmt":"2024-09-24T05:39:26","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15098"},"modified":"2024-09-24T05:39:26","modified_gmt":"2024-09-24T05:39:26","slug":"nikkei-hits-3-week-high-on-wall-street-gains-and-boj-dovishness","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/nikkei-hits-3-week-high-on-wall-street-gains-and-boj-dovishness\/","title":{"rendered":"Nikkei Hits 3-Week High on Wall Street Gains and BOJ Dovishness"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Key points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Nikkei jumps 1.5%, reaching 38,293.34, after Wall Street&#8217;s strength.<\/li>\n\n\n\n<li>BOJ&#8217;s dovish stance supports market sentiment, as chip-related stocks rally.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p class=\"wp-block-paragraph\">The Nikkei climbed to a three-week high as trading resumed after a long holiday weekend in Japan. Boosted by Wall Street\u2019s performance overnight, the Nikkei surged by 1.5%, reaching 38,293.34 in early trading.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Earlier in the session, it touched 38,338.65, its highest point since September 3. <\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/09\/20240924-133544-1024x474.jpg\" alt=\"The Nikkei 225 closed at 38,026.15, marking a slight pullback from its recent highs. After reaching an intraday high of 38,513, the index faced selling pressure, resulting in the decline towards 38,026. The MACD indicator on vtmarkets.com shows waning momentum, with the histogram shrinking and the signal line flattening, indicating potential consolidation or further downside. Additionally, the moving averages (5, 10, 30-period) suggest a downward trend, especially after the price dipped below the 5-period moving average.\" class=\"wp-image-15099\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>Picture: Nikkei trading at 38033.85 on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Nikkei 225 closed at 38,026.15, marking a slight pullback from its recent highs, following cautious market sentiment surrounding U.S. stock performance and the Federal Reserve\u2019s rate decision. After reaching an intraday high of 38,513, the index saw selling pressure, as reflected by the decline towards 38,026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The MACD indicator is showing signs of waning momentum, with the histogram declining and the signal line flattening, suggesting potential consolidation or further downside. The moving averages (5, 10, 30-period) indicate a downward trend, particularly after the price crossed below the 5-period moving average.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Market participants remain focused on the U.S. market developments, where modest gains were observed, though uncertainty lingers regarding the long-term impact of the Fed&#8217;s recent rate cut. Should the Nikkei break below the key support level of 37,921, we could see further bearish action, while resistance at 38,666 remains a key level for any recovery attempt.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>BOJ maintains cautious approach with steady interest rates<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Meanwhile, the Bank of Japan (BOJ) held its interest rates steady last Friday, giving a dovish outlook. BOJ Governor Kazuo Ueda reiterated that the central bank could take its time in <a href=\"https:\/\/x.com\/markets\/status\/1830851897458078168\">assessing how the global economy plays out<\/a>. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This cautious stance from the BOJ seems to have provided market participants with some reassurance, as it signals the central bank will not be rushing into any tightening of monetary policy.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Bank of Japan Governor Kazuo Ueda submitted a document to a government panel suggesting that the central bank will continue to raise interest rates if the economy and prices perform as expected by the BOJ <a href=\"https:\/\/t.co\/M4j3ODEo0B\">https:\/\/t.co\/M4j3ODEo0B<\/a><\/p>&mdash; Bloomberg Markets (@markets) <a href=\"https:\/\/twitter.com\/markets\/status\/1830851897458078168?ref_src=twsrc%5Etfw\">September 3, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Chip-related stocks were among the best performers, with Advantest gaining 4% and Tokyo Electron up 2.7%. Both companies are closely tied to the global semiconductor industry, which has been experiencing both supply constraints and demand surges this year. The sector\u2019s rise could point to further strength if global chip demand continues to expand.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>You might be interested: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/japans-nikkei-posts-best-week-since-mid-august-but-yen-strength-caps-gains\/\">Japan\u2019s Nikkei posts best week since mid-August, but yen strength caps gains\u00a0<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Fast Retailing and Toyota lead gains amid positive market momentum<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Other key gainers included Fast Retailing, the parent company of Uniqlo, which increased by 1.25%. Fast Retailing has remained resilient, likely benefitting from its strong overseas sales, despite the Yen\u2019s recent fluctuations. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Toyota Motor also climbed 0.72%, offering the biggest boost to the broader Topix index, which was up 1.02% at 2,669.34. Toyota has been actively managing its supply chain challenges, and its positive momentum suggests traders remain optimistic about the automaker\u2019s future earnings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We expect these trends to persist in the near term, especially if Wall Street maintains its upward trajectory and the BOJ continues to signal patience in its monetary approach. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Start trading now \u2014 click <\/strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\"><strong>here<\/strong><\/a><strong> to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key points: The Nikkei climbed to a three-week high as trading resumed after a long holiday weekend in Japan. Boosted by Wall Street\u2019s performance overnight, the Nikkei surged by 1.5%, reaching 38,293.34 in early trading.&nbsp; Earlier in the session, it touched 38,338.65, its highest point since September 3. Picture: Nikkei trading at 38033.85 on the<a href=\"https:\/\/www.global-vtrader.com\/en\/analysis\/nikkei-hits-3-week-high-on-wall-street-gains-and-boj-dovishness\/\" class=\"read-more\">Continue Reading<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[31,37,18],"class_list":["post-15098","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-indices","tag-nikkei","tag-policy"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15098","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=15098"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15098\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}