The Nikkei stock index ended slightly higher Monday after directionless trading as investors adopted a wait-and-see stance before the U.S. Federal Reserve’s two-day policy meeting.

The yield on the benchmark 10-year Japanese government bond rose to 1.965 percent, its highest level since June 2007, maintaining an upward trend as investors expect the Bank of Japan will increase interest rates this month.

The 225-issue Nikkei Stock Average rose 90.07 points, or 0.18 percent, from Friday to 50,581.94. The broader Topix index finished 21.75 points, or 0.65 percent, higher at 3,384.31.

On the top-tier Prime Market, the main gainers were nonferrous metal, real estate and construction issues.

The U.S. dollar briefly weakened to the upper 154 yen zone on prospects that the interest rate gap between Japan and the United States will narrow due to a divergence in the monetary policies of the two countries, dealers said.

Investors are widely expecting the U.S. central bank to cut rates at the policy meeting starting Tuesday, while speculation has grown that the Japanese central bank will raise rates at its Dec. 18-19 policy gathering.

The benchmark Nikkei moved in and out of negative territory ahead of the upcoming Fed policy meeting and the release of some earnings reports from U.S. tech companies, including Oracle Corp., later this week.

Investors locked in gains in some technology shares, while the market was supported by Wall Street advances late last week.

"Since the Fed’s rate cut is seen inevitable, it’s not a major concern of the market anymore," said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank, adding that investors are focused on the pace of future rate cuts.

If the pace of the Fed’s rate reductions turns out to be slower than the market had expected, U.S. stocks could be pushed down sharply, adversely impacting their Japanese counterparts, he added.