TOKYO, Jan 24 (Reuters) - Japan's Nikkei index reversed
course to close higher on Monday, as investors scooped up cheap
stocks after U.S. equity futures rose, although gains were
capped by caution ahead of the U.S. Federal Reserve's policy
meeting this week.
The Nikkei edged up 0.24% to 27,588.37. Earlier in
the day, it fell 1.2% after the S&P 500 and Nasdaq posted their
biggest weekly drop since March 2020 last week. The broader
Topix inched up 0.14% to 1,929.87.
In a sign that the U.S. sell-off may have been overdone,
Nasdaq futures gained more than 0.8% during Asian trading
"There was demand as long as stocks were cheap because the
economic outlook remains positive," said Jun Morita, general
manager of the research department at Chibagin Asset Management.
"Also the gains in U.S. futures supported investor sentiment."
Chip-making equipment maker Tokyo Electron and
Uniqlo clothing store owner Fast Retailing led the
Nikkei's gains, rising 1.62% and 1.17%, respectively.
Camera maker Canon rose 2.02% after a report that
its annual net profit would jump 20%. Peer Nikon rose
Oil explorers gained amid rising oil prices, with Inpex
Shipping companies also rallied, with Kawasaki Kisen
gaining 6.24% to become the top gainer on the Nikkei.
There were 148 advancers on the Nikkei index against 74
The volume of shares traded on the exchange's main board
was 1.08 billion, compared with the average of 1.09
billion in the past 30 days.
(Reporting by Junko Fujita; Editing by Subhranshu Sahu)