Japanese shares end lower ahead of central bank meetings, Topix recoups losses

Japanese stock market: Japan's Nikkei share average closed lower on Tuesday, with chip-related stocks leading the decline, amid caution ahead of central bank meetings in the United States and Japan.

The Nikkei fell 0.87 per cent to 33,242.59, with chip-making equipment maker Tokyo Electron shedding 5.23 per cent to become the biggest drag and the worst performer on the index.

Japanese markets were closed on Monday for a holiday.

"Investors were cautious ahead of big events - the central meetings in the US and Japan," said Takamasa Ikeda, senior portfolio manager at GCI Asset Management.

Chip-testing making equipment maker Advantest lost 4.03 per cent and chip maker Renesas Electronics slipped 4.75 per cent.

Technology start-up inventor SoftBank Group slipped 3.29 per cent after the shares of its chip designer Arm Holdings fell on the second day of trading.

Money markets expect the US Federal Reserve to keep rates on hold on Wednesday, according to the CME FedWatch tool, though focus will be on the central bank's forward guidance.

The Bank of Japan (BOJ) will announce its policy decision on Friday after the conclusion of a two-day policy meeting.

Investors are waiting for comments from BOJ Governor Kazuo Ueda, who told a newspaper earlier this month that the central bank could get enough data by year-end to judge whether conditions were in place to raise short-term interest rates.

The broader Topix recovered from early losses to close 0.08 per cent higher at 2,430.39, with heavyweights Toyota Motor rising 2.07 per cent and Mitsubishi UFJ Financial Group climbing 2.56 per cent.

The banking sector rose 2.08 per cent and automakers climbed 2.06 per cent.

The shipping industry jumped 3.12 per cent to become the top gainer among the Tokyo Stock Exchange's 33 industry sub-indexes.