The Nikkei index rose by 0.3% driven by electronics manufacturers and trading companies.

The Japanese stock market rose as expectations of a possible interest rate cut by the Federal Reserve boosted overnight US stocks. The Nikkei average rose 0.3% to 44916.65 points. Electronic manufacturers and trading companies led the gains. Kamen Rider Holdings rose 4.3% and Marubeni rose 2.5%. The USD/JPY exchange rate was 147.40, little changed from 147.38 at 5 pm New York time on Monday. Investors are watching for any developments in the leadership election of Japan's ruling party, the Liberal Democratic Party.