Tokyo stocks close higher on tech rallies

TOKYO: Tokyo stocks closed higher on Tuesday as high-tech shares rallied following a record close on the Nasdaq, with investors focusing on the Fed meeting this week.

The benchmark Nikkei 225 index rose 0.96 percent, or 279.50 points, to 29,441.30, while the broader Topix index advanced 0.80 percent, or 15.73 points, to 1,975.48.

"High-tech shares were particularly strong following gains on the Nasdaq," said Daiwa Securities chief technical analyst Eiji Kinouchi.

"Investors were also encouraged by the recent acceleration of vaccinations in Japan," Kinouchi told AFP.

Investors were paying close attention to the US Federal Reserve's policy decision on Wednesday, chief strategist Yoshihiro Ito of Okasan Online Securities said in a note.

This week's calendar is dominated by the Fed's two-day policy meeting, which is expected to see central bankers raising their inflation forecasts.

The Fed is expected to maintain its current policy of accommodation, but central bank chief Jerome Powell will face myriad questions about prices during a news conference.

One of the focuses "is when (the Fed) will announce tapering (of its easing policy) but market consensus is that it won't be in this meeting," Okasan's Ito said.

The dollar fetched 110.07 yen in Asian afternoon trade, against 110.08 yen in New York late Monday.

In Tokyo, tech shares were among winners. Chip-testing equipment maker Advantest jumped 1.67 percent to 10,300 yen as chip-making equipment manufacturer Tokyo Electron gained 1.68 percent to 49,500 yen.