TOKYO: Tokyo stocks closed modestly lower Thursday after policy decisions from the US Federal Reserve and China’s central bank, with focus shifting to the European Central Bank.

The benchmark Nikkei 225 index slipped 0.05 percent, or 16.93 points, to 33,485.49, while the broader Topix index ended down 0.02 percent, or 0.56 points, at 2,293.97.

The dollar fetched 141.19 yen in Asia, up from 139.94 yen in New York on Wednesday.

Japanese markets zigzagged between positive and negative territory during the session, influenced by profit-taking and support from US tech rallies.

Overnight, the Fed maintained interest rates as expected, but signalled plans for additional increases, while the People’s Bank of China cut a key rate on Thursday morning.

Now, traders are awaiting the European Central Bank’s policy decision later in the day, Daiwa Securities senior strategist Shuji Hosoi said.

The ECB is expected to again hike interest rates and signal that the fight against inflation is not over yet.

“In that case, the yen would depreciate further, and dollar-denominated Japanese shares would be cheaper for foreign investors, prompting drastic changes in stock prices,” Hosoi said.

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A cheaper yen against the dollar also “supported strength in export-related shares,” IwaiCosmo Securities said.

Major Chinese economic data released Thursday “were weaker than expected, but that was offset by the Chinese central bank’s interest rate cut,” the brokerage added.

Pharmaceuticals were among the losers in Tokyo, with Daiichi Sankyo sinking 3.98 percent to 4,800 yen, and Eisai dropping 5.91 percent to 9,527 yen.

Chip-linked shares rallied, however, with Advantest jumping 1.88 percent to 19,550 yen, and Tokyo Electron climbing 2.01 percent to 20,300 yen.

SoftBank Group lost 1.79 percent to 6,492 yen, while Uniqlo operator Fast Retailing fell 1.00 percent to 36,570 yen.