Tuesday, September 17, 2013
Nikkei Edges Higher Ahead Of FOMC Meeting
TOKYO (NQN)--Tokyo stocks are trading slightly higher Tuesday morning, with the Nikkei Stock Average climbing about 30 points to move in the lower-14,400 range.
Investors are buying cyclical stocks -- including marine shippers and steelmakers -- as hopes brighten for the global economy.
The U.S. and Russia agreed to place Syria's chemical weapons under international supervision and eventually destroy them. Investor sentiment is improving now that military intervention in Syria appears unlikely. In addition to a recovery in the Japanese economy, economic uptrends seen in Europe and China are also supporting the stock market.
Upward momentum appears limited, however. After former U.S. Treasury Secretary Lawrence Summers withdrew his name from consideration for the post of Federal Reserve Board chairman, speculation is growing that the U.S. will extend its quantitative easing, weakening the dollar against the yen. The stronger yen is prompting selling of exporters. A senior market analyst at Monex Inc. said it is unlikely investors will aggressively chase stock prices higher before the Fed releases results of the two-day meeting of the Federal Open Market Committee, which will kick off Tuesday in the U.S.