TOKYO: Japan’s Nikkei share average gained in early trading on Thursday as market participants focused on the Bank of Japan’s policy statement due later in the day for interest rate clues.
The Nikkei rose 0.5% to 40,842.88 by 0058 GMT. The broader Topix gained 0.4%.
The BOJ is widely expected to keep interest rates steady at 0.5%, but investors will search for hints in the policy statement and accompanying quarterly outlook report on when the central bank is likely to resume rate hikes.
The central bank’s decision does not come at a specified time, but usually comes some time after 0200 GMT, with Governor Kazuo Ueda giving a press conference from 0630 GMT.
Traders have firmed up bets for the BOJ to resume raising rates from as early as October since Tokyo reached a long-awaited trade agreement with Washington earlier this month, removing a degree of uncertainty from the economic outlook.
“A hike by the end of the year is becoming more priced by markets,” Tapas Strickland, head of market economics at National Australia Bank, said in a podcast.
“If that tentative trade deal with the U.S. holds, then that should provide a little bit more confidence for the economy, just given where inflationary pressures are at the moment.”
On Thursday, shares of companies that benefit from a drop in copper prices outperformed, with Fujikura and Furukawa Elecric each rallying about 6%.
Earnings also lifted some stocks, with Kyocera jumping 8.4%, while Nissan Motor rose more than 3%.
At the other end, Panasonic Holdings slumped 3.5%, and chip-testing equipment maker Advantest lost 2.4%, extending declines to a fourth straight session.
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