Japan’s Nikkei is settled ahead of US inflation data

Japan’s Nikkei closed slightly changed on Thursday amid caution ahead of the release of key US inflation data, while bank stocks rose amid speculation the Bank of Japan’s stimulus package could be modified as next week’s policy meeting approaches.

The Nikkei ended Thursday’s session up 0.01 percent at 26,449.82 points, after touching 26,547.61 for the first time since December 27.

Markets initially tracked Wall Street’s gains on Wednesday night amid bets that a calming pace of increase in consumer prices in the United States would allow the Federal Reserve to moderate its interest rate hike.

Bank stocks rose after a report by the Yomiuri newspaper that central bank officials will review the side effects of massive stimulus at their policy meeting next week, raising speculation about a policy shift in the near term.

The sub-index of banks on the Tokyo Stock Exchange rose 4.26 percent.