Japan Market gains with eyes on Fed, BOJ meetings

20 Sep 2022 , 04:24 PM

Japanese share market finished session higher on Tuesday, 20 September 2022, as investors took heart from overnight U.S. stock rises and as Japans core inflation increased 2.8% from a year ago. However, gains were limited as investors watch-out for outcome of the Federal Reserves monetary policy announcement on Wednesday and Bank of Japan meeting on Thursday. At closing bell, the 225-issue Nikkei Stock Average index advanced 120.77 points, or 0.44%, to 27,688.42. The broader Topix index of all First Section issues on the Tokyo Stock Exchange grew 8.71 points, or 0.45%, to 1,947.27. Investors have priced in at least another 75 basis point increase in rates at the end of a 2-day Federal Open Market Committees meeting on Wednesday. The Bank of Japan, however, is expected to remain a global outlier by refusing to hike interest rates, even as inflation rises. Japan on Tuesday reported that core consumer inflation touched a near eight-year high in August. Shares of tech companies advanced in line with rise US peers, with chipmaking equipment manufacturer Tokyo Electron and tech conglomerate SoftBank Group Corp finishing higher. Mobile phone operator KDDI Corp added 1.8%, while electrical components manufacturer TDK Corp rose 2.7%. CURRENCY NEWS: The U.S. dollar hovered mostly around the 143 yen line as dollar buying by domestic firms was offset by selling aimed at position adjustments ahead of the U.S. and Japanese central banks two-day policy meetings, starting Tuesday and Wednesday, respectively. The US dollar fetched 143.08-10 yen compared with 143.15-25 yen in New York at 5 p.m. Monday.Powered by Capital Market – Live News