Singapore Markets closed

Tokyo shares end higher on Fed rate cut

Tokyo shares ended higher Thursday after the Federal Reserve lowered borrowing costs while Japan's central bank held fire on policy changes but hinted at possible rate reductions of its own in future.

The benchmark Nikkei 225 index added 0.37 percent, or 83.92 points, to 22,927.04, while the broader Topix index rose 0.07 percent, or 1.11 points, to 1,667.01.

Fed boss Jerome Powell said US growth remained "resilient", adding that the latest rate cut was designed "to help keep the US economy strong".

The positive sentiment encouraged buying in Tokyo, although weaker-than-expected Chinese manufacturing data capped further gains, said SMBC Nikko Securities.

The Bank of Japan in the afternoon announced that it was keeping its super easy monetary policy and slightly adjusted the wording of its forward guidance.

Okasan Online Securities said the BoJ's decision strengthened the market's belief that the central bank's easy monetary policy will be prolonged further, which encouraged buyers.

"Dip-buying provided support during the afternoon session (after the BoJ decision) and lifted the Nikkei index to the 22,900 level," Okasan said.

"But the market gave up earlier gains on weak Chinese data and the yen firmed while the dollar softened," Okasan said.

Among major shares, Sony surged 4.08 percent to 6,625 yen a day after it upgraded its full-year forecasts.

SoftBank Group added 3.71 percent to 4,190 yen and Uniqlo-operator Fast Retailing rose 1.30 percent to 67,050 yen.

Soft Chinese data weighed on shares that rely on business in that country.

Construction equipment maker Komatsu lost 2.31 percent to 2,559 yen and Hitachi Construction Machinery lost 0.70 percent to 2,824 yen.