Tokyo: Shares close higher ahead of Fed meeting

[TOKYO] Tokyo shares closed higher on Tuesday (Mar 15) as investors awaited a Fed policy meeting starting later in the day.

The benchmark Nikkei 225 index added 0.15 per cent, or 38.63 points, to end at 25,346.48, while the broader Topix index advanced 0.79 per cent, or 14.35 points, to 1,826.63.

"The Nikkei index opened lower following a mixed close on Wall Street. But it moved into positive territory after a pause in the rise in oil prices, reducing inflation fears," Okasan Online Securities said.

Investors are also bracing for a 2-day Federal Reserve policy meeting, where US central bankers are expected to raise interest rates for the first time since the Covid-19 pandemic began.

The dollar has been rising recently from the 115-yen level, fetching 118.30 in Asian trade against 118.19 yen in New York on Monday.

A cheaper yen inflates exporters' expatriated profits and makes their goods competitive in foreign markets.

Automakers were higher with Toyota gaining 2.14 per cent to 1,955 yen, Nissan soaring 4.21 per cent to 484.4 yen and Honda climbing 0.69 per cent to 3,170 yen.

Uniqlo operator Fast Retailing dropped 4.53 per cent to 55,300 yen and SoftBank Group tumbled 4.15 per cent to 4,265 yen, but Sony rose 1.09 per cent to 11,505 yen. AFP