Summary

The Japanese equity market rose in September, with the TOPIX (w/dividends) climbing 5.55% on-month and the Nikkei 225 (w/dividends) rising 6.17%. Stocks fell in the early part of the month as difficult talks between the US and Canada regarding the North American Free Trade Agreement (NAFTA) spurred concerns that negotiations would be further drawn out. The market was also weighed down by reports that the US could impose additional tariffs on Chinese goods. From the middle to the end of the month, however, stocks rebounded as the yen weakened against the dollar after strong US economic indicators sent interest rates higher. Stocks were further supported by easing concerns over US-China trade friction after the US’s additional tariffs on Chinese goods were relatively limited.