Japan's Nikkei edges lower ahead of BOJ meeting

Hoya

21/04/2023 04:17

TOKYO, April 21 (Reuters) - Japan's Nikkei share average
inched lower on Friday, erasing early gains driven by the strong
performance of chip-related shares, as investors were cautions
about making active bets ahead of Bank of Japan's policy
meeting.
    The index  .N225  was down 0.07% to 28,638.24 by the midday
break, after rising to 28,778.37, its highest level since Aug.
26. 
    For the week, the index is set to rise 0.51%, marking the
second straight week of gains. 
    The broader Topix  .TOPX  slipped 0.06% to 2,038.45 and is
poised to rise 0.98% for the week.
    "Gains on the Nikkei were capped as investors awaited the
outcome of the BOJ's policy meeting. They were also eying
corporate outlook as the earnings season kicked off in Japan and
the U.S." said Yugo Tsuboi, a senior strategist at Daiwa
Securities.
    "But the trend that investors seek to buy undervalued stocks
has not changed." 
    The BOJ is scheduled to hold a two-day meeting next week
where some market participants expect the central bank to tweak
its yield curve control policy, which controls the movement of
the benchmark 10-year government bonds.
    Uniqlo brand owner Fast Retailing Co Ltd  9983.T  fell 1.29%
to become the biggest drag on the Nikkei. Technology investor
SoftBank Group Corp  9984.T  lost 1.98%.
    The banking sector  .IBNKS.T  lost 1.44% to become the worst
performer among 33 industry sub-indexes on the Tokyo Stock
Exchange, followed by energy explorers  .IMING.T , which lost
1.1%. 
    Chip-making equipment maker Tokyo Electron Ltd  8035.T  rose
2.44% to become the biggest support to the Nikkei. Chip-testing
equipment maker Advantest Corp  6857.T  was up 4.92% . 
    Precision machine maker Disco Corp  6146.T  surged 13.09% to
become the top gainer on the TSE's prime market after it posted
a record group annual operating profit. 


 (Reporting by Junko Fujita; Editing by Sonia Cheema)
 ((junko.fujita@thomsonreuters.com;))