TOKYO: Japan’s Nikkei share gauge edged higher on Tuesday, snapping a two-day skid, as anticipation of rate cuts from the Federal Reserve and positive sales reports by department stores buoyed sentiment.
The Nikkei 225 Index struggled for direction, losing as much as 0.25 percent at one point, but ended the day up 0.3 percent to 42,310.49. The broader Topix added 0.6 percent.
Trading was subdued after a market holiday in the United States for Labour Day diminished trading cues. Ahead of key US jobs data on Friday, markets are showing an 89 percent chance the Fed will reduce rates by 25 basis points (bp) at its next meeting.
“Japanese equities are finding some modest support, partially because the market is pricing in a 25 bp Fed rate cut in September, which is broadly positive for risk assets,” said Dilin Wu, a research strategist at Pepperstone. “However, elevated Japanese government bond yields and spillover pressure from US tech stock sell-offs are keeping buyers cautious.”
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