Japanese stocks advanced for the first time in three days ahead of monetary policy decisions due later from the Bank of Japan and the Federal Reserve.
Topix +0.6% at 1,577.26 as of 9:35 a.m. in Tokyo. Nikkei 225 +0.7% at 21,771.47. Yen -0.1% at 108.89 per dollar.
Electronics and drug makers were the biggest boosts to the Topix index. Fanuc Corp. rose after reporting the first-quarter operating profit that beat estimates. The BOJ is widely expected to sit tight as it waits to assess the decision by the Fed, which is forecast to deliver its first interest-rate cut in a decade.
“While a 25 basis-point rate cut by the Fed is a likely scenario, if the Fed signals a rate cut to continue, the stock market may go into a moderate risk-on mode,” said Toshihiko Matsuno, who works in investment research and services at SMBC Nikko Securities Inc. Yet, “investors may remain in a wait-and-see mood as various market reactions can be expected depending on the degree of a U.S. rate cut and a post-rate cut policy.”
Source : Bloomberg