Japanese equities rose on Tuesday, tracking overnight gains in Wall Street as investors cheered upbeat corporate earnings, though caution ahead of this week’s U.S. Federal Reserve policy meeting kept the domestic market in check.
The Nikkei share average was up 0.35% at 27,932.08, after scaling above the key 28,000 level for the second day. The index hasn’t closed above that level since July 16.
The broader Topix added 0.47% to 1,934.65. The Topix value index rose 0.69%, outpacing the growth index’s 0.25% advance.
Among Topix sub-sectors, non-ferrous metals rallied the most with a 2.52% climb. The iron and steel index rose 1.94%, followed by a 1.88% jump in the mining sector.
“The overall strong earnings from corporate America have investors thinking the U.S. recovery is on track, and that should also be a plus for Japan’s economy, so value stocks are rising,” Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management said.
The Fed meeting starts later in the day, and all eyes may be on whether the U.S. central bank expresses any new concerns about high inflation when it concludes its gathering on Wednesday.
