Japan’s Nikkei Tracks Wall Street Higher; Fed Policy Meeting in Focus (Update 1)

TOKYO (Reuters) – Japan’s Nikkei share average rose on Tuesday, underpinned by overnight strong finish on Wall Street, while investors await the outcome of the U.S. Federal Reserve’s two-day meeting to determine the fate of the yen.

The Nikkei rose 1.24% to close at 38,405.66.

The index marked its first monthly decline this year, falling 4.99% in April in its biggest monthly drop since December 2022.

The broader Topix jumped 2.2% to 2,743.17.

“The U.S. equities were strong since the end of the last week, while the U.S. yields traded lower. That underpinned Japanese stocks today,” Shoji Hosoi, senior strategist, Daiwa Securities said.

Markets in Japan were closed on Monday.

Shares of chip-making equipment maker Tokyo Electron rose 2.6%. Silicon-wafer maker Shin-Etsu Chemical surged 4.89% and technology…