Japan's Nikkei ends higher, caution before Fed decision limits gains

Isuzu Motors

30/01/2024 06:59

(Update closing prices)
       TOKYO, Jan 30 (Reuters) - Japan's Nikkei share average
ended higher on Tuesday, as chip-related shares tracked
overnight gains on Wall Street, but caution ahead of the Federal
Reserve's decision limited the rise.      
    The Nikkei  .N225  edged up 0.11% to close at 36,065.86,
coming off earlier highs, as investors hesitated from active
buying toward the end of the session.
    "Investors wanted to see comments from the Federal Reserve
Chair Jerome Powell. Also they wanted to wait for corporate
outlook as the earnings season just started," said Naoki
Fujiwara, senior fund manager at Shinkin Asset Management.
    The Federal Open Market Committee's (FOMC) rate decision and
statement will be announced on Wednesday.
    Chip-related shares rose, with Advantest  6857.T  up 1.69%
and Shin-Etsu Chemical  4063.T  gaining 3%.
    Chipmaker Renesas Electronics  6723.T  climbed 2.81%. 
    Air-conditioning maker Daikin Industries  6367.T  rose
0.86%.
        All three major U.S. stock indexes closed higher
overnight, with the tech-heavy Nasdaq  .IXIC  enjoying the
largest percentage gain and the S&P 500  .SPX  notching a record
closing high.  .N 
    "Foreign investors continued to lead buying in Japanese
stocks as seen in the gains of the Topix Core 30," said Takehiko
Masuzawa, trading head of Phillip Securities Japan.
    The Topix Core 30  .TOPXC  rose 0.09%, with Nintendo
 7974.T  rising 2.22% and Sony Group  6758.T  up 0.87%.
    The broader Topix  .TOPX  gave up early gains to end 0.1%
lower at 2,526.93, with a 0.8% decline in Toyota Motor  7203.T 
weighing the most.
    Honda Motor  7267.T  slipped 1.03% and Isuzu Motors  7202.T 
lost 3.32%.
        Tsuruha Holdings  3391.T  fell nearly 9% after retail
giant Aeon Co  8267.T  said it had entered into exclusive talks
with Oasis Management to acquire the shares the Hong Kong-based
activist investor holds in the drugstore chain. Aeon fell 0.46%.
    Of more than 1,600 stocks on the Tokyo Stock Exchange's
prime market, two-thirds fell while most others rose. 

 (Reporting by Junko Fujita; Editing by Subhranshu Sahu and
Mrigank Dhaniwala)
 ((junko.fujita@thomsonreuters.com;))