Japanese stocks rise, and caution ahead of Fed decision limits gains

Japanese stocks closed higher on Tuesday as the yen’s decline against the dollar boosted expectations of better performance by local manufacturing companies. Still, caution ahead of the Federal Reserve’s monetary policy statement limited gains.

The Nikkei index rose 0.61 percent to close at 28,115.74 points, while the broader Topix index jumped 1.12 percent to 1,994.75 points.

The dollar rose against most major currencies in the evening, to compensate for some of its losses in recent times, as dealers shunned risky currencies due to concerns related to the global economic outlook due to the anti-Covid-19 restrictions imposed by China.

Shionouji & Co jumped 2.77% after the Yomiuri newspaper reported that regulators in Japan had prepared a report confirming the potential efficacy of an anti-COVID-19 drug made by the pharmaceutical company.

All sub-indices on the Tokyo Stock Exchange rose, with the utility sector leading the gains, up 2.24 percent, while the insurance sector index added 2.07 percent.

Leading Advantest fell 1.43 percent, while Tokyo Electron pared its previous losses and ended the session up 0.09 percent.