Japan’s Nikkei 225 Erases Losses for 2016 Before Fed Meeting

  • Nikkei climbs for fifth day, longest rally in two weeks
  • Yen is weaker than corporations estimated: Toyo Securities

Capital Link's McGonegal: Markets Need Higher Oil Prices

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Japanese shares rose, with the Nikkei 225 Stock Average recouping losses for this year as the yen slid to a 10-month low against the dollar before the Federal Reserve sets interest rates this week.

The equity gauge advanced for a fifth day, its longest rally in two weeks. The Topix index fluctuated between a gain of 1.2 percent and a decline of 0.3 percent. Traders are pricing in a 100 percent chance the Fed will raise interest rates by 25 basis points when it meets for a policy review on Dec. 13-14. Japanese stocks have staged a dramatic rebound in the second half, riding on a global recovery in risk appetite, with investors betting that U.S. President-elect Donald Trump will boost economic stimulus.