Japan's Nikkei rises as oil prices ease, Fed decision reassures

By Reuters News
People walk past a stock quotation board displaying the Nikkei share average, outside a brokerage in Tokyo, Japan, August 19, 2026. REUTERS/Manami Yamada

TOKYO, Sept 17 (Reuters) - Japan's Nikkei share average rose on Thursday as investors snapped up beaten-down gaming and pharmaceutical stocks, while sentiment was supported by lower crude oil prices and a largely expected policy decision from the U.S. Federal Reserve.

The Nikkei .N225 ended the day up 0.3% at 64,136.25. The broader Topix .TOPX gained 0.8% to 4,094.19.

Overnight, Brent crude dropped 2.6% as reports of Saudi Arabia offering extra crude cargoes through Oman reduced fears of supply disruptions in the Middle East.

The Fed raised its key interest rate by a quarter point, as widely expected, while signalling the likelihood of another hike this year.

"A major factor behind the rise in stocks today is there have been developments that have somewhat alleviated some of the uncertainty in markets," said Wataru Akiyama, an equities strategist at Nomura Securities.

"However, although gains are being seen across a wide range of sectors and stocks, the Japanese stock market cannot be described as being in a particularly strong position right now."

Interest rate-sensitive tech stocks are trading with a weak tone ahead of a Bank of Japan policy decision on Friday and with a potential slowdown in AI development still being priced into the market, Akiyama said.

The BOJ is widely expected to raise rates by a quarter point.

Chip-sector heavyweights Advantest 6857.T and Tokyo Electron 8035.T were the biggest drags on the Nikkei, falling 1.5% and 1.4%, respectively.

However, some AI-related stocks bucked the trend, with SoftBank Group 9984.T rising 1% and cable maker Fujikura 5803.T adding 0.6%.

Investors also rotated into gaming and pharmaceutical shares, which have lagged the broader market, lifting Nintendo 7974.T 4.3% and Bandai Namco 7832.T 3.4%. Shares of Sumitomo Pharma 4506.T jumped 5.3% to be the Nikkei's biggest percentage gainer.

Oil-related stocks tracked crude prices lower, with Inpex 1605.T sliding 3.2%.

Of the Nikkei's 225 components, 182 rose while 42 fell and one ended flat.

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.