Roundup: Japan’s Nikkei ends higher, gains capped ahead of Fed meeting

TOKYO, Jan. 30– Japan’s benchmark Nikkei stock index closed at a six-week high Monday, following U.S. shares’ rising late last week, although gains were capped amid caution ahead of the U.S. Federal Reserve’s upcoming meeting. Brokers here said that recent upbeat U.S. economic data supported the market view that the Fed may be looking to lower its aggressive…

TOKYO, Jan. 30 (Xinhua) — Japan’s benchmark Nikkei stock index closed at a six-week high Monday, following U.S. shares’ rising late last week, although gains were capped amid caution ahead of the U.S. Federal Reserve’s upcoming meeting.

The 225-issue Nikkei Stock Average added 50.84 points, or 0.19 percent, from Friday to close the day at 27,433.40, marking its highest closing level since Dec. 16.

The broader Topix index, meanwhile, shed 0.26 point, or 0.01 percent, to finish at 1,982.40.

Brokers here said that recent upbeat U.S. economic data supported the market view that the Fed may be looking to lower its aggressive interest rate hikes amid concerns that further increases could tip the world’s largest economy into a recession.

They added, however, that investors were reluctant to chase the market higher ahead of the Fed’s two-day policy meeting starting Tuesday and corporate reports from Japanese firms, as earnings season swings into top gear here.

“I am unsure if this upbeat momentum will continue this week. Investors are cautious and could sell stocks to book profits ahead of the Fed meeting, U.S. employment data as well as domestic corporate results,” Shigetoshi Kamada, general manager at the research department at Tachibana Securities, was quoted as saying.

By the close of play, air transportation, chemical, and textile and apparel issues comprised those that gained the most.

Iron and steel, oil and coal product, and mining issues were among notable decliners.

Shares rising on solid earnings outlooks included industrial robot maker Fanuc, who climbed 3.6 percent, after it raised its annual operating profit outlook.

Semiconductor-oriented issues found favor, with Tokyo Electron gaining 0.7 percent, while silicon wafer maker Shin-Etsu Chemical jumped 5.1 percent, after also raising its profit outlook.

Travel-linked shares advanced on hopes for increased demand in the near future, with Odakyu Electric Railway adding 0.4 percent, while ANA Holdings rose 0.8 percent.

Trading volume on the first trading day of the week came to 2,773.03 billion yen (21.33 billion U.S. dollars). Enditem