Nikkei rises on boost from chip-sector stocks

TOKYO: Japan’s Nikkei share average rose on Tuesday, shaking off early weakness as chip-sector stock gains buoyed the overall index.

Three of the five biggest advancers in index-point terms were semiconductor-related companies, led by chip-making tool maker Tokyo Electron, as they tracked an overnight rally for US peers.

The Nikkei added 0.1 percent to end the day at 50,655.10. The broader Topix finished flat at 3,384.92.

Japanese stocks started the day on the back foot amid investor caution in the lead-up to the US Federal Reserve’s policy decision on Wednesday. An interest rate cut is widely expected, but the central bank’s subsequent monetary policy path is clouded by stark divisions within the board.

“Focus has, almost solely, now pivoted to the commentary and guidance that will accompany the announcement of a 25-basis-point Fed funds rate cut,” Michael Brown, a strategist at Pepperstone, wrote in a client note.

“Anticipation ahead of the ‘main event’ of the week will likely lead to conviction being capped throughout today.”