News
Wednesday, September 16, 2026
What’s happening: Japanese stocks traded lower this morning as investors digested the latest economic reports.
What happened: Japan reported a wider-than-expected trade deficit for August, with imports surging faster than exports.
A higher-than-expected decline in machine orders also exerted pressure on the Nikkei 225.
Why it matters: Data released this morning showed Japan’s trade deficit rose sharply to ¥1,105.6 billion in August from ¥294.1 billion in the year-ago period. The latest reading came in wider than market estimates of a ¥1,052.6 billion gap and marked the largest deficit since January.
Japan’s exports surged 19.3% year-over-year to ¥10,048.4 billion in August, topping market expectations of 18.2% growth, while imports jumped 28% year-over-year to ¥11,153.9 billion, following a 27.9% gain in the previous month and beating estimates of 26.3%.
Japan’s trade balance has been negatively impacted by disruptions in crude supplies, as the country imports around 97% of its total oil demand.
Japan’s core machine orders declined by 3.7% to ¥1,016.9 billion in July, following a 9.7% surge in the previous month. The decline was steeper than market estimates of 2.8%.
Markets widely expect the Bank of Japan to hike its benchmark interest rates on Friday amid persistent inflation and weakness in the yen.
Meanwhile, the US Federal Reserve is scheduled to announce its policy decision later today, with investors expecting the central bank to raise rates by 25 basis points, marking its first hike since 2023.
Tech stocks in Japan traded mixed this morning, with shares of SoftBank Group and Kioxia among the key losers.
Japan’s Nikkei 225 dipped around 164 points to trade at 63,320.34 this morning, while the USD/JPY forex pair gained around 0.2% to 155.42.
What to watch: Investors will keep an eye on the Fed’s and BoJ’s policy outlook as well as crude oil prices.
Japan is also scheduled to release its inflation data on Thursday. The country’s Consumer Price Index, which surged 0.4% in July, is expected to rise by 0.2% in August.
Context: Bitcoin prices fell sharply this morning as the US Senate rejected a major cryptocurrency regulation bill.
Details: On Tuesday, the US Senate blocked The CLARITY Act in a procedural vote. Although the vote was 50-49 in favour, it fell short of 10 votes to reach the 60-vote level that was needed to advance the bill.
The CLARITY Act was announced in the US House of Representatives in May 2025 to develop a regulatory framework for digital assets. US President Donald Trump had backed the bill and urged Congress to pass it.
Speculations of the Federal Reserve gearing up to announce its first interest rate hike since 2023 also exerted pressure on bitcoin prices. Higher interest rates impact the demand for speculative assets.
Key crypto stocks, including Coinbase Global, Robinhood Markets and Strategy, also recorded sharp losses on Tuesday.
Strength in the US dollar also exerted pressure on BTC prices, as a higher greenback makes cryptos more expensive for foreign currency holders. The US dollar index, which measures the greenback’s performance versus a basket of major peers, gained around 0.1% to 99.67 this morning.
Bitcoin prices fell around 2.5% to $75,960.97 this morning, while Ethereum shed 4.2% to reach $2,405.24.
What to watch: The US Federal Reserve will announce its interest rate decision (2200 UAE Time) today, with markets widely expecting the central bank to hike rates by 25 bps.
Other Markets: European indices closed lower on Tuesday, with the FTSE 100, DAX 40, CAC 40 and STOXX Europe 600 Index down by 0.37%, 0.15%,0.34% and 0.28%, respectively.
Russia and Ukraine launched aerial strikes on each other’s key infrastructure, despite claims by US President Donald Trump that both regions had agreed to halt strikes on energy facilities. The news sent the USD/RUB pair lower in forex trading this morning.
New Zealand’s Westpac McDermott Miller consumer confidence index improved to 89.5 in the third quarter from 80.4 in the previous quarter. The latest reading remaining in the pessimism zone exerted pressure on the NZD/USD forex pair.
Australia’s Westpac–Melbourne Institute Leading Economic Index came in unchanged in August, which sent the AUD/USD pair lower in forex trading this morning.
Israel’s annual inflation rate came in unchanged from the previous month at 1.5% in August. However, the latest reading being lower than market estimates of 1.6% exerted pressure on the USD/ILS forex pair.
Eurozone’s trade surplus widened to €14.2 billion in July from €10.7 billion in the previous month. Despite this being the biggest monthly trade surplus since October 2025, the EUR/USD pair slipped in forex trading this morning.