TOKYO — Japanese stocks posted modest gains on Tuesday after a three-day weekend, with investors reluctant to make major bets ahead of a policy meeting by the Bank of Japan, despite lowered estimates for aggressive monetary tightening by the U.S. Federal Reserve.
The Nikkei share average opened 0.8% higher to break through the psychological barrier of 27,000, briefly retreating before making another push to finish at 26,977.37 at the end of the morning session, up 0.71% for the day.
The broader Topix gained 0.49%.
“It’s tough to continue buying ahead of the Bank of Japan’s monetary policy meeting this week and earnings season getting underway,” said a market participant at a domestic securities firm.
Of Nikkei’s 225 components, 164 made gains, 58 made losses, and three traded flat.
Shares of heavy industries were some of the strong performers, buoyed by a report over the weekend that Prime Minister Fumio Kishida’s government won’t set a ceiling on defense spending in the next annual budget.
Kawasaki Heavy Industries Ltd rose 4.28%, and Mutsubishi Heavy Industries Ltd was up 3.07%.
Even as shares of Apple Inc made losses overnight following a Bloomberg report that the company planned to slow hiring over the next year, Japanese suppliers didn’t appear to be broadly affected.
Sony Group Corp, Apple’s primary image sensor supplier, gained 2.72%. Components makers Murata Manufacturing Co Ltd and Taiyo Yuden Co Ltd were down 0.05% and up 0.99%, respectively.
Utilities companies weighed in the Nikkei, with the sector down 1.41% overall.
Kansai Electric Power Co Inc lost 2.35%, and Tokyo Electric Power Co Holdings Inc was down 1.87%. (Reporting by Sam Byford and Tokyo markets team; Editing by Sherry Jacob-Phillips)