Japanese stocks rebound as Nikkei closes higher amid central bank expectation

(MENAFN) On Tuesday, Japan's Nikkei index managed to reverse earlier losses and close slightly higher, as investors sought to recover from recent declines. The Nikkei ended the day up by 0.15 percent at 38,525.95 points, a modest recovery from an earlier drop of about 1 percent. This rebound follows a 2 percent increase on Monday, which helped the index recover from a recent three-month low. Despite this, the broader Topix index closed lower, down 0.19 percent to 2,754.45 points.

The market's performance was influenced by the upcoming central bank meetings in Japan and the United States. The Bank of Japan is expected to announce new quantitative easing measures following its monetary policy meeting on Wednesday. There is widespread speculation about whether the bank will opt for a rate hike or maintain its current stance. Meanwhile, in the U.S., while a rate cut is deemed unlikely this week, the market fully anticipates a 25 basis point cut in September.

Among individual stocks, chip-making equipment manufacturer Tokyo Electron saw a turnaround, with its shares rising 0.84 percent, contributing significantly to the Nikkei's gains. Staffing firm Recruit Holdings also posted gains, with its shares climbing 2.86 percent. Robotics company Fanuc saw its stock increase by 2.93 percent after the company raised its annual operating profit forecast by 0.8 percent. Pasona Group shares surged 12.17 percent following a regulatory filing revealing that Oasis Management holds a 5.02 percent stake in the recruitment firm.

Conversely, Fast Retailing, the owner of the Uniqlo clothing brand, experienced a decline of 0.53 percent, making it the largest negative contributor to the Nikkei's performance. Out of the 225 stocks on the Nikkei index, 100 saw increases, 123 declined, and two remained unchanged. 

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