Japan's Nikkei falls over 1% ahead of central bank meetings in Japan, US

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30/10/2023 03:07

TOKYO, Oct 30 (Reuters) - Japan's Nikkei share average
fell more than 1% on Monday, tracking declines on the Dow, as
caution ahead of central bank meetings in the United States and
Japan hurt risk appetite.
    The Nikkei  .N225  lost 1.23% to 30,609.48 by the midday
break, while the broader Topix  .TOPX  was down 1.04% to
2,231.23.
    "The Nikkei was dragged down by the losses in the Dow Jones
over the weekend. And investors hesitated to buy stocks as they
awaited policy decisions at central bank meetings in the U.S.
and Japan," said Shoichi Arisawa, general manager of the
investment research department at IwaiCosmo Securities.
    "Also investors wanted to wait for the announcement of more
corporate outlook, as some companies were heavily sold after
disclosing disappointing outlook."
    On Friday, the Dow Jones Industrial Average  .DJI  lost
1.12% and the S&P 500  .SPX  lost 0.48%, as investors digested a
hectic week of mixed earnings, and economic data that seemed to
support the "higher for longer" interest rate scenario.  .N 
    The Bank of Japan started a two-day policy meeting on Monday
under growing pressure to shift further away from its
controversial bond yield control as the 10-year bond yield nears
the bank's policy cap of 1%.
    The U.S. Federal Reserve will keep its key interest rate on
hold on Nov. 1 and may wait longer than previously thought
before cutting it, according to economists in a Reuters poll, as
the central bank's higher-for-longer message gains traction.
    Among individual shares, Hino Motors tumbled 18.69% to its
daily limit after the automaker flagged an annual net loss,
changing the forecast from a profit. 
    Omron  6645.T  also fell to its daily limit, tanking 15.83%
after the healthcare equipment maker cut its annual profit
forecast.  
    

 (Reporting by Junko Fujita; Editing by Mrigank Dhaniwala)
 ((junko.fujita@thomsonreuters.com;))