Tokyo’s benchmark Nikkei ticks higher by close

AFP

Tokyo stocks ended higher on Tuesday with traders weighing speculation about a possible US interest rate hike while looking ahead to an upcoming Bank of Japan policy meeting.
Dealers tracked a rally on Wall Street following dovish remarks by Federal Reserve Governor Lael Brainard who argued against hiking US interest rates quickly.
She said the central bank should adopt a “moderate and gradual” approach to lifting rates and avoid moves to “tighten policy pre-emptively.”
Her comments stood in contrast to two Fed officials who signalled on Friday that a rate hike could be justified as soon as this month.
The Nikkei 225 index rose 0.34 percent, or 56.12 points, to 16,729.04, while the Topix index of all first-section issues was flat, edging down 0.11 points to 1,322.99.
“With Brainard’s remarks, rate-hike expectations have backed down,” Toshihiko Matsuno, a senior strategist at SMBC Friend Securities, told Bloomberg News.
Investors are awaiting next week’s Bank of Japan meeting, with some speculating it could launch more stimulus to prop up the struggling economy.
Pharmaceutical giant Takeda rose 0.96 percent at 4,713 yen and Daiichi Sankyo added 1.08 percent to 2,379.5 yen.
Market heavyweight Fast Retailing rose 0.78 percent to 35,750 yen.
Renesas Electronics jumped 2.15 percent at 616 yen after it announced a $3.2 billion buyout of smaller US chipmaker Intersil.
The dollar was changing hands at 101.91 yen against 101.85 yen in New York late Monday bets on a US rate hike were trimmed following Brainard’s comments.