Japan's Nikkei tracks Wall Street higher; Fed policy meeting in focus

Shin-Etsu Chemical

30/04/2024 04:09

TOKYO, April 30 (Reuters) - Japan's Nikkei share average
traded higher on Tuesday, tracking an overnight strong finish on
Wall Street, while investors await the outcome of the U.S.
Federal Reserve's two-day meeting to determine the fate of the
yen.
    The Nikkei  .N225  rose 1.38% to 38,459.01 by the midday
break, while the broader Topix  .TOPX  advanced 2.01% to
2,740.54.
    "The U.S. equities were strong since the end of the last
week, while the U.S. yields traded lower. That underpinned
Japanese stocks today," said Shuji Hosoi, senior strategist,
Daiwa Securities.
    Markets in Japan were closed on Monday.
    Shares of chip-making equipment maker Tokyo Electron
 8035.T  rose 2.69%. Silicon-wafer maker Shin-Etsu Chemical
 4063.T  surged 4.4% and technology investor SoftBank Group
 9984.T  gained 1.8%.
    The markets' focus is now on the U.S. Fed's policy meeting
this week after Japan's currency  JPY=EBS  surged as much as 5
yen against the dollar from a fresh 34-year low of 160.245 on
Monday in what traders cited as intervention.  FRX/ 
    "Whether or not what the market thought was an intervention
yesterday was a success is not known. Because the yen could
spike 160 to the dollar again if the Fed's message is hawkish
after its meeting," Daiwa's Hosoi said.
    Japanese authorities have not confirmed that they had
stepped into the currency market in support of the yen.
 MKTS/GLOB 
    Among individual stocks, shares of KFC Holdings  9873.T 
surged 6.49% after local media reported U.S. buyout fund Carlyle
is close to acquiring the operator of Kentucky Fried Chicken
outlets. 
    Sumitomo Corp  8053.T  jumped 7% after a report said U.S.
fund Elliott built a "large stake" in the trading firm. 
    Of the 225 components on the Nikkei, 188 stocks rose and 27
fell.

 (Reporting by Junko Fujita; Editing by Sherry Jacob-Phillips)
 ((junko.fujita@thomsonreuters.com;))