Japanese market wins with eyes on Fed and BOJ meetings

The Japanese stock market ended its session higher on Tuesday, September 20, 2022, as investors rejoiced in US stocks rising overnight and core inflation in Japan rose 2.8% from to a year ago.

However, gains were limited as investors watch the outcome of Wednesday’s Federal Reserve monetary policy announcement and Thursday’s Bank of Japan meeting.

At the close, the 225-issue Nikkei Stock Average was up 120.77 points, or 0.44%, at 27,688.42. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 8.71 points, or 0.45%, to 1,947.27.

Investors expected at least another 75 basis point rate hike at the end of a two-day meeting of the Federal Open Market Committee on Wednesday.

The Bank of Japan, however, is expected to remain a global exception in refusing to raise interest rates, even if inflation rises. Japan announced on Tuesday that core consumer inflation hit a nearly eight-year high in August.

Shares of tech companies rose in line with the rise of their U.S. counterparts, with chip-making equipment maker Tokyo Electron and tech conglomerate SoftBank Group Corp finishing higher.

Mobile phone operator KDDI Corp gained 1.8%, while electrical components maker TDK Corp rose 2.7%.

CURRENCY NEWS: The US Dollar hovered mostly around the 143 yen line as domestic corporate dollar buying was offset by selling aimed at adjusting positions ahead of the two-day policy meetings of US central banks and Japanese, starting Tuesday and Wednesday, respectively. The U.S. dollar hit 143.08-10 yen from 143.15-25 yen in New York as of 5 p.m. Monday.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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