TOKYO, Nov. 1 (Xinhua) -- Japan's benchmark Nikkei stock index ended slightly higher Tuesday with companies reporting solid earnings finding favor and some investors hitting the sidelines ahead of the results of the U.S. Federal Reserve's policy-setting meeting.

The 225-issue Nikkei Stock Average added 91.46 points, or 0.33 percent, from Monday to close the day at 27,678.92.

The broader Topix index, meanwhile, gained 9.07 points, or 0.47 percent, to finish at 1,938.50.

Local brokers said that all eyes were on the outcome of the Fed's meeting and hints as to whether it will continue with its aggressive interest rate hikes to combat inflation.

There has been speculation that the Fed could ease the pace of its hikes from the end of the year, in which case the widening rate gap with the Bank of Japan would begin to narrow and the yen's persistent weakness rebalance.

If the hikes increase as some leading economists believe will be the case into 2023, then the fear of a recession in the United States will continue to grow, as will that of the yen's weakness, which has been further inflating rising costs for energy and material products for resource-poor Japan.

"On the stock market, shares traded narrowly because market participants were keen to watch whether or not the Fed will hint if it will go for smaller rate hikes from December after its policy meeting," Yutaka Miura, senior technical analyst at Mizuho Securities Co., was quoted as saying.

Market participants, nevertheless, sought out issues reporting solid earning and sold those whose reports came in below par, market strategists here said.

"Domestic companies so far have reported mixed results, some were strong and some were weak. So there were a mixture of selloffs and buyings," Chihiro Ohta, assistant general manager at the investment research and investor services at SMBC Nikko Securities, was quoted as saying.

By the close of play, wholesale trade, food, and iron and steel-linked issues comprised those that gained the most.

Japan Tobacco Inc. was the Nikkei's biggest winner leaping 8.7 percent after the company raised its annual profit forecast and reported solid earnings for the January-September period.

Nikkei heavyweight SoftBank Group buoyed the broader market climbing 2.7 percent, but Kyocera was the day's biggest loser tumbling 7.5 percent.

Automakers skidded down after Toyota Motor reported a hefty drop in net profit for the first six months ending September and cut its production target. Toyota reversed 1.2 percent by the close.

Panasonic surged 7.3 percent, even though its second-quarter operating profit dropped 11 percent, while Komatsu ended 4.8 percent higher, after reporting a solid operating profit for the April-September period.

Issues that fell outpaced those that rose by 911 to 849, while 77 ended the day unchanged.

On the Prime Market on Tuesday, 1,232.55 million shares changed hands, rising from Monday's volume of 1,228.50 million shares. Enditem

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