Stock Index

The Bank of Japan raised its policy rate to a 31-year high of 1.25% to curb the risk of inflation overshooting its 2% target. Japan’s Nikkei 225 advanced 1%, led by AI- and semiconductor-related shares such as SoftBank, Advantest and Tokyo Electron. Gaming stocks lagged, with Nintendo and Konami each down about 2%.

Turkish regulators froze trading in funds run by seven asset managers and ordered 130 funds to liquidate following a market selloff. The funds involved have a combined portfolio of 891 billion lira ($21.4 billion) and about 353,000 investors, according to a source cited by Reuters. The Central Bank of the Republic of Turkiye increased repo funding to 300 billion lira and lifted banks’ interbank borrowing limits tenfold to ease lira liquidity strains.

The Bank of England kept its benchmark rate unchanged at 3.75%, but a 6-3 vote signalled a more hawkish tilt, with chief economist Huw Pill among three backing a hike. The BOE sharply lifted its inflation outlook, forecasting inflation will rise above 4% in early 2027, well above its 2% target. As global bond yields retreated and oil prices fell, US tech shares rebounded and Australia’s ASX was expected to open 0.6% higher. The Australian dollar rose 0.3% to 71.1 US cents.

Japan’s Nikkei index ended slightly higher as investors snapped up gaming and pharmaceutical shares that had been under pressure, with lower oil prices also lifting sentiment. Gains were capped by declines in chip-related stocks as traders waited for the Bank of Japan’s policy decision. The broader Topix index also rose.

The Federal Reserve raised rates, lifting the federal funds target range to 3.75% to 4.00%. U.S. stocks came under pressure, with the Dow Jones Industrial Average down 631 points, or 1.2%, while the S&P 500 fell 0.5% and the Nasdaq Composite was little changed. Near-month West Texas Intermediate crude slid 3.7% as Middle East supply pressures eased and U.S. demand data came in below expectations.

U.S. stocks closed lower after the Federal Reserve raised interest rates as expected and signaled that further tightening may be ahead to tackle elevated inflation. The Dow Jones Industrial Average fell 1.17%, while the S&P 500 slid 0.43% and the Nasdaq finished nearly flat. Energy shares lagged as crude prices retreated, while semiconductor stocks advanced.

The U.S. 10-year Treasury yield hovered near 5%, pressuring Wall Street to close lower overnight. Tensions in the Middle East escalated again, including an attack on Saudi Arabia’s East-West pipeline and continued disruption around the Strait of Hormuz. WTI held firm in the $104–105 a barrel range, while Brent hovered near $108, curbing global risk appetite.

Indian equities are expected to open flat on Sept. 16 after benchmarks fell in the prior session. The Sensex slid 777.94 points to 74,003.82 and the Nifty 50 dropped 279.50 points to 23,118.60. Rising Middle East tensions kept WTI crude in the $104–105 range, while the U.S. 10-year Treasury yield climbed to its highest level in nearly two decades, weighing on global risk sentiment amid inflation concerns.

Indian equities sold off sharply on Tuesday after crude oil rose above $100 a barrel and US Treasury yields moved past 5%, weighing on risk appetite. The combined market value of BSE-listed companies fell below $5 trillion to $4.92 trillion, a three-month low, and India’s share of global market capitalisation slipped below 3%. The Nifty dropped 280 points to 23,118.60, its lowest level in five months. Investors are awaiting policy meetings from major central banks for direction.

Fresh signs of disruptions to Saudi crude supply sent oil prices sharply higher, with Brent futures up 2.6% to $US108.39 a barrel and WTI futures up 4% to $US105.45. The move weighed on US equities, extending losses across the major indexes. The Dow fell 0.6%, while the S&P 500 and Nasdaq Composite slipped 0.5% and 0.8%, respectively.