Japan's Nikkei grew, driven by tech stocks rallying in resonance with Wall Street; meanwhile, banks pulled Topix lower.

The Tokyo stock market opened on not-so-clear signals today, with the Nikkei index making gains and tech stocks following suit from Wall Street's performance the previous evening. Optimism on rate reduction possibilities globally has ensued on unclear floating cues that the Fed may indeed reduce rates this month, driving technology stocks.

There was no similar broad rally, but the bank sector experienced some profit-taking resulting from a healthy rally last week. Thus, traders are trying to adjust their positions because of the ever-changing outlook on the Japanese interest-rate-regime path.

By 0151 GMT, the Nikkei had increased by 0.7% to 49,670.09, and the Topix fell back by 0.37% to 3,328.67.

"Eventually investors bought stocks that became attractively priced and liquidated those that had been running up sharply," explained Seiichi Suzuki, Chief Equity Market Analyst from Tokai Tokyo Intelligence Laboratory.

Leading the charge this time are tech stocks.

In particular, chip and semiconductor-linked shares stole the show on Tuesday:

-Avantec gained 4.49%

-Tokyo Electron was up 3.99%

-Renesas Electronics flew 6.92%

-There was a 3.83% increase for tech behemoth SoftBank Group

On Tuesday markets in the United States ended higher with a loss of 6 wins in 7 sessions, mainly driven by the tech sector regaining some momentum.

After the huge surge in purchasing by Japanese banks, major banks in Japan lost their footing as the market rolled back optimism on the Bank of Japan's possible rate hike.

Mitsubishi UJFH slid by 2% and Sumitomo Mitsui Financial Group also lost 2%.

Following clear signs from BOJ Governor Kazuo Ueda suggesting the possible increase of benchmark rates at the forthcoming December 18–19 fiscal meeting, bank stocks emerged as the front challengers.

Under the gun were automakers

Auto stocks exerted added pressure on the Topix, fueled by worries that exporter earnings would suffer from the yen's strong rally:

• Toyota Motor dropped 1%
• Honda Motors dived 0.63%
• Nissan Motor fell 0.81%

Market breadth, at its coverage of all types of stocks, was weak. Out of more than 1,600 stocks that trade on the Tokyo SE Prime Market:

• 26% advanced
• 69% declined
• 3% remained unchanged

Japan's markets continue to see a see-saw of energy between global optimism over U. S. cut rates, and domestic uncertainty over the potential BOJ policy tangles-twisting both ways for a dynamic trading platform for the investors.