Press "Enter" to skip to content
Image by Kakidai

Tokyo Shares Open Lower Ahead of Fed, New Japan PM

Shares

Key Points

  • Tokyo shares opened lower on Wednesday as investors shied away from major moves ahead of a Federal Reserve decision, and with Prime Minister Shinzo Abe’s successor preparing to take office.
  • The benchmark Nikkei 225 index fell 0.10 percent, or 23.73 points, to 23,431.16 while the broader Topix index lost 0.18 percent, or 2.91 points, to 1,637.93.
  • The global market is focused on Wednesday’s conclusion of the two-day Fed meeting. Fed Chair Jay Powell is expected to again signal near-zero interest rates for the foreseeable future.
  • Visit The Financial Today’s homepage for more stories.

Tokyo — Tokyo shares opened lower on Wednesday as investors shied away from major moves ahead of a Federal Reserve decision, and with Prime Minister Shinzo Abe’s successor preparing to take office.

The benchmark Nikkei 225 index fell 0.10 percent, or 23.73 points, to 23,431.16 while the broader Topix index lost 0.18 percent, or 2.91 points, to 1,637.93.

“The Tokyo market is expected to stay within a narrow range,” Okasan Online Securities said in a note.

“It is difficult to expect active buying ahead of FOMC, so the Nikkei average will likely remain stuck in the current band,” it said, referring to the Fed committee.

The global market is focused on Wednesday’s conclusion of the two-day Fed meeting. Fed Chair Jay Powell is expected to again signal near-zero interest rates for the foreseeable future.

Analysts are also watching for further details on the bank’s new inflation targeting strategy and comments from Powell on the outlook for economic recovery.

The Bank of Japan will also kick off its two-day policy board meeting on Wednesday. Governor Haruhiko Kuroda is scheduled to hold a press conference on Thursday.

The relative weakness of the dollar was putting further weight on the Tokyo market. The US currency stood at 105.27 yen in Tokyo, compared with 105.45 yen in New York.

Looking further ahead, Tokyo investors are assessing the likely economic policies of Yoshihide Suga, who is expected to replace Abe officially in the afternoon as the new prime minister.

Suga, who has long served as Abe’s right-hand man, is coming to the office with pledges to continue his predecessor’s programs, especially his economic agenda.

Among major shares in Tokyo, SoftBank Group surged 3.36 percent to 6,622 yen as it moves to sell chip designer Arm to NVIDIA for up to $40 billion. 

Japanese electronics parts maker Murata Manufacturing rose 0.47 percent to 6,646.

Automaker Honda dropped 2.87 percent to 2,622 yen. Japan Airlines fell 1.27 percent to 2,178 yen. 

Toyota was off 0.21 percent to 7,051 yen.

Engineering firm Hitachi lost 1.94 percent to 3,695 yen amid reports that it planned to withdraw from a proposed UK nuclear power project.

Be First to Comment

Leave a Reply

Hi, I'm Alfred Cardenas!We’re running an equity crowdfunding campaign.

This is your chance to invest and own a part of The Financial Today!