Japan’s Nikkei closes higher, supported by gains in chip stocks

Japan’s Nikkei index reversed course to close higher on Wednesday, supported by gains in chip-related stocks. At the same time, investors remained cautious ahead of the US Federal Reserve’s interest rate decision due later on Wednesday.

The Nikkei rose 0.22 percent to 27,715.75 points, and the broader Topix index rose 0.13 percent to 1945.75 points.

The main index opened slightly lower after Wall Street closed sharply on Tuesday after a profit warning from Walmart pushed retail shares lower. Weak consumer confidence data fueled spending worries.

The Federal Reserve is expected to announce later on Wednesday that it will raise interest rates by 0.75 percentage points to combat inflation.

In Japan, chip-related shares of Tokyo Electron and Advantest supported the Nikkei index, climbing 3.1 percent and 2.28 percent, respectively.

The performance of the defensive sectors was also strong, as the railway sector rose 1.17 percent, becoming the biggest gainer among the 33 sub-indices on the Tokyo Stock Exchange. The pharmaceutical sector advanced 1.12 percent.

Uniqlo put most pressure on the Nikkei index, as its share fell 1.42%. SoftBank Group shares lost 0.12 percent.

Canon shares fell 1.03 percent even as the camera maker raised its full-year operating profit forecast.