TOKYO: Tokyo’s blue chip shares traded in a narrow range Tuesday, as US central bankers prepared to kickoff a policy meeting where they are expected to agree on a rate hike.
The benchmark Nikkei 225 index hovered around the previous session’s close and inched up 0.09 percent, or 22.71 points, to 25,330.56 in early trade, while the broader Topix index advanced 0.45 percent, or 8.10 points, to 1,820.38.
The market will continue to search for a direction ahead of the two-day Federal Open Market Committee (FOMC) meeting, which will kick off later Tuesday, analysts said.
Tokyo stocks open lower with eyes on Ukraine
Investors were turning wary about renewed waves of Covid infections in China that have resulted in lockdowns of major cities such as Shenzhen, forcing operational suspensions of factories.
However, the market has been heartened by continued negotiations between Ukraine and Russia amid news that top US and Chinese officials met separately in Rome to discuss the war, said Tapas Strickland at National Australia Bank.
“To be clear, there has not been material progress, but ongoing talk suggests an off-ramp may be in the wings even as fighting continues on the ground,” he wrote.
“The lockdowns in China of course will compound supply chain problems at a time when inflation is already uncomfortably high,” Strickland added.
For now, many investors are expected to refrain from making major bets ahead of the FOMC meeting, leaving the Nikkei in a narrow band, Okasan Online Securities said in a note.
Among major shares, Toyota added 0.73 percent to 1,928 yen.
Industrial robot maker Fanuc rose 1.14 percent to 19,525 yen. Air carrier ANA Holdings advanced 1.71 percent to 2,442 yen.
But Sony Group dropped 0.53 percent to 11,320 yen. SoftBank Group gave up 2.52 percent to 4,338 yen. Uniqlo-operator Fast Retailing gave up 3.04 percent to 56,170 yen.
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