FE Today Logo

Tokyo shares higher ahead of Fed’s rate hike decision

September 21, 2022 00:00:00

TOKYO, Sept 20 (AFP): Tokyo shares closed higher on Tuesday, with investors eyeing the US Federal Reserve's expected rate hike later this week.

The benchmark Nikkei 225 index climbed 0.44 percent, or 120.77 points, to end at 27,688.42, while the broader Topix index rose 0.45 percent, or 8.71 points, to 1,947.27.

Tokyo investors likely took heart from rallies on Wall Street "but after some buying, a wait-and-see attitude will grow" ahead of the US Federal Reserve's two-day meeting through Wednesday, Mizuho Securities said in a note.

On Wall Street, all three indices had opened in the red but closed higher thanks to a technical rebound and bargain-hunting after last week's nightmarish run.

Investors have their sights fixed on Washington as the Federal Reserve meets Tuesday and is expected to announce a 75-basis-point interest rate increase Wednesday.

Meanwhile, Japan's inflation hit 2.8 percent in August, its highest since 2014, official data released before the opening bell showed.

The figures "attract somewhat more attention than usual" ahead of the Bank of Japan's policy meeting this week "but (are) still positively benign relative to the inflation challenge elsewhere", economist Taylor Nugent of National Australia Bank said in a commentary.

The Japanese central bank will hold a two-day policy meeting from Wednesday.

Investors widely expect the Bank will keep its massive easing measures unchanged though there could be minor tweaks.

The dollar fetched 143.10 yen in early Asian trade, against 143.26 yen in New York late Monday.

The Japanese unit last week hit a fresh 24-year low of 144.99 to the dollar, though it has bounced slightly after comments from Japanese officials that signalled they were ready to intervene to provide support.

Among individual equities, SoftBank Group was up 1.41 percent at 5,535 yen.

Toyota was up 1.70 percent at 2,065 yen, and Uniqlo operator Fast Retailing was up 1.24 percent at 82,380 yen.

Share if you like