Tokyo stocks close higher led by tech gains

Tokyo stocks closed higher on Wednesday, led by tech firms, as attention shifted to a US Federal Reserve policy decision due later in the day.

The benchmark Nikkei 225 index ended up 0.22 per cent, or 60.54 points, at 27,715.75 while the broader Topix index edged up 0.13 per cent, or 2.58 points, to 1,945.75.

As US tech futures were bought in after-hours trading on Wall Street, Tokyo rebounded from an initial drop, largely thanks to rises in “chip-linked and some tech” shares, said Atsuko Ishitoya, strategist at Daiwa Securities.

However, investors remained cautious ahead of the Fed policy decision, analysts said. The US central bank is set to announce another big interest rate increase, the fourth this year, in its battle against surging inflation that is squeezing American families. The dollar fetched 136.93 yen, against 136.95 yen in New York on Tuesday.

Chip-testing equipment maker Advantest was up 2.28 per cent at 7,620 yen and chip-making equipment manufacturer Tokyo Electron climbed 3.10 per cent to 45,900 yen.

Hitachi added 0.30 per cent to 6,744 yen but Sony Group closed down 0.60 per cent at 11,660 yen, while Nintendo was off 0.42 per cent at 59,890 yen.