TOKYO: Following advances on Wall Street, Tokyo stocks gained 0.37 percent but market gains were limited by investor caution. By the break, the Nikkei 225 index at the Tokyo Stock Exchange climbed 57.29 points to 15,348.93 while the Topix index of all first-section issues was up 0.53pc, or 6.57 points, at 1,248.89.
Yutaka Miura, senior technical analyst at Mizuho Securities, said, “Stocks came back quickly last week from the steep selloff that put the market into a correction, but investors remain cautious.” The Fed’s Federal Open Market Committee may decide to finally wind up its economic stimulus drive, known as quantitative easing, at its two-day meeting. Investors will focus on what the committee says about the next phase of its policy, including any hint at a change in a mid-2015 timeline to raise interest rates.
He added, “The Fed will be looked to for more insight on what to expect (going forward), but there is still ample room for the market to fall again. I don’t think we are out of the woods yet by any stretch.”
On Friday, the American bourses capped a strong week on a high note as good earnings from Microsoft and others overshadowed a poor report from Amazon.