TOKYO, Oct 6 (Reuters) - Japan's Nikkei average is likely to rise on Wednesday after world stocks rallied in the wake of the Bank of Japan's surprise interest rate cut the day before, fuelling speculation that other governments would take additional action to bolster the global economic recovery.
Nikkei futures traded in Chicago closed at 9,625, up 1.1 percent from the Osaka close. The benchmark Nikkei rose 1.5 percent on Tuesday after the BOJ pledged to pump more funds into the struggling economy and keep rates virtually at zero.
"Expectations toward additional easing around the world continue and the factors that can support the global economy are becoming more solid," said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities.
"The market will also likely rise as world stocks appear to be in an uptrend and the Nikkei has entered a 'buy zone'."
The benchmark Nikkei is likely to move between 9,450 and 9,650, market players said. The Nikkei's 1.5 percent rise on Tuesday was the biggest daily percentage gain since Sept. 15 -- the day the BOJ intervened in the currency market for the first time in more than six years.
The next upward target for the Nikkei is seen at 9,704, its recent peak hit on Sept. 21, while support likely stands at its 25-day moving average, now at 9,328, which is considered a proxy for the one-month moving average and is closely watched in Japan.
The Nikkei's slow stochastic, an indicator of short-term trends, is pointing upward after pulling out of oversold territory on Tuesday.
U.S. stocks rallied to nearly a five-month high.
The BOJ's action came as markets increasingly believe the U.S. Federal Reserve will stimulate the world's largest economy in a similar fashion.
In early Asia trade, the dollar traded at 83.23 yen, not far from a 15-year low of 82.87 yen set just before Japan intervened in the currency market on Sept. 15.
Analysts have said the BoJ's moves were not sufficient to halt the downward trend in dollar/yen, with the U.S. currency pressured by falling U.S. bond yields and expectations the Federal Reserve will implement fresh quantitative easing.
The Fed's next policy-making meeting is scheduled on Nov. 2 and 3. (Reporting by Aiko Hayashi; Editing by Edmund Klamann)