TOKYO: Japan’s Nikkei share average gave up early gains on Tuesday to close lower as caution prevailed ahead of central bank policy decisions in the US and Japan, with chip company Advantest weighing the most on the benchmark index.
The Nikkei closed 0.24% lower at 39,364.68. It had risen as much as 0.86% earlier in the session, supported by the Nasdaq’s gains overnight.
Chip-testing equipment maker Advantest, whose shares tend to move along with artificial intelligence-related chip makers, fell 9.3%.
“The Nikkei tracked US technology shares higher earlier in the session, but the momentum was not strong enough as investors were cautious ahead of policy decisions in Japan and the US,” said Kentaro Hayashi, senior strategist at Daiwa Securities.
“And with the declines in Advantest, the index reversed its course.” The broader Topix fell 0.37% to 2,728.2.
The Nasdaq closed at a record high on Monday and the S&P 500 also rose as investors gauged the latest economic data while looking toward the Federal Reserve’s final policy announcement of the year later in the week to gauge the path of interest rates.
The Fed is set to conclude its two-day policy meeting on Wednesday, with markets pricing in a 95.4% chance for a cut of 25 basis points (bps), according to CME’s FedWatch Tool.
The Bank of Japan will announce its policy decision on Thursday and a majority of economists expect it to hold rates steady at 0.25%. Swap rates indicated a 21.7% chance of a 25-basis-point hike.
SoftBank Group rose 4.42% after US President-elect Donald Trump said the technology start-up investor would invest $100 billion in the US over the next four years.
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