<p>Japan's Nikkei share average touched a 1-1/2-month high on Wednesday, buoyed by broad Wall Street gains overnight, although caution before a crucial Federal Reserve policy decision later in the day limited the upside.</p>.<p>Domestic earnings results also produced several big winners and losers in the session.</p>.<p>The Nikkei entered the mid-day break up 0.18 per cent at 27,376.22. That was well off the early high of 27,547.67, a level last seen on December 16, before the Bank of Japan shocked investors by tweaking its yield curve controls in a de facto tightening of monetary policy.</p>.<p>The broader Topix was also well back from the morning's high.</p>.<p>All of the big three US stock benchmarks closed more than 1 per cent higher on Tuesday after a deceleration in US labour cost rises added to the case for a slowing of aggressive Fed policy tightening.</p>.<p>Money markets have priced in a quarter-point rate hike later Wednesday, down from half a point previously and 75 basis points prior to that.</p>.<p>"For the moment, the market's focus is on the outlook for monetary policy, and if the US economy will have a soft or hard landing," Maki Sawada, a strategist at Nomura Securities, said in a briefing with journalists.</p>.<p>"The Nikkei is likely to stay in positive territory throughout the day," but with the Fed decision looming, "the topside is going to be heavy," she said.</p>.<p>Of the Nikkei's 225 components, 172 rose versus 49 that fell, with four flat.</p>.<p>Energy was the best-performing sector following a jump in crude as fears of a US recession retreated.</p>.<p>Only healthcare and utilities had marginal losses.</p>.<p>Electronic component maker Alps Alpine was the best performer, gaining 5.97 per cent, followed by chip-related stocks Screen Holdings and Advantest, up 4.28 per cent and 3.71 per cent respectively, all after announcing financial results.</p>.<p>Housing material maker TOTO led losers, dropping 6.47 per cent, followed by office equipment manufacturer Seiko Epson's 4.88 per cent slide, also following earnings announcements.</p>
<p>Japan's Nikkei share average touched a 1-1/2-month high on Wednesday, buoyed by broad Wall Street gains overnight, although caution before a crucial Federal Reserve policy decision later in the day limited the upside.</p>.<p>Domestic earnings results also produced several big winners and losers in the session.</p>.<p>The Nikkei entered the mid-day break up 0.18 per cent at 27,376.22. That was well off the early high of 27,547.67, a level last seen on December 16, before the Bank of Japan shocked investors by tweaking its yield curve controls in a de facto tightening of monetary policy.</p>.<p>The broader Topix was also well back from the morning's high.</p>.<p>All of the big three US stock benchmarks closed more than 1 per cent higher on Tuesday after a deceleration in US labour cost rises added to the case for a slowing of aggressive Fed policy tightening.</p>.<p>Money markets have priced in a quarter-point rate hike later Wednesday, down from half a point previously and 75 basis points prior to that.</p>.<p>"For the moment, the market's focus is on the outlook for monetary policy, and if the US economy will have a soft or hard landing," Maki Sawada, a strategist at Nomura Securities, said in a briefing with journalists.</p>.<p>"The Nikkei is likely to stay in positive territory throughout the day," but with the Fed decision looming, "the topside is going to be heavy," she said.</p>.<p>Of the Nikkei's 225 components, 172 rose versus 49 that fell, with four flat.</p>.<p>Energy was the best-performing sector following a jump in crude as fears of a US recession retreated.</p>.<p>Only healthcare and utilities had marginal losses.</p>.<p>Electronic component maker Alps Alpine was the best performer, gaining 5.97 per cent, followed by chip-related stocks Screen Holdings and Advantest, up 4.28 per cent and 3.71 per cent respectively, all after announcing financial results.</p>.<p>Housing material maker TOTO led losers, dropping 6.47 per cent, followed by office equipment manufacturer Seiko Epson's 4.88 per cent slide, also following earnings announcements.</p>