Japan's Nikkei ends lower as investors brace for Fed policy decision

Lasertec

01/05/2024 07:26

(Updates with closing levels)
    By Brigid Riley
       TOKYO, May 1 (Reuters) - Japan's Nikkei share average
closed lower on Wednesday, with traders maintaining a cautious
stance on the first day of the month ahead of the U.S. Federal
Reserve's monetary policy decision. 
    The Nikkei  .N225  managed to recoup some of the early
losses as investors singled out individual stocks, but finished
the day 0.3% lower at 38,274.05.
    The broader Topix  .TOPX  declined 0.5% to 2729.40.     
    The Federal Reserve Open Market Committee (FOMC) is widely
expected to leave interest rates unchanged at the end of its
two-day meeting on Wednesday, as U.S. inflation proves sticky. 
    While markets have already pared back expectations of a Fed
rate cut this year, investors remain wary of how hawkish a
message Fed Chair Jerome Powell will send at his press
conference.
    Large policy rate gap between Japan and the U.S. continues
to put pressure on the yen, raising questions on how excessive
currency weakness will impact the economy and consumption. 
    The risk of currency intervention, and suspicion that Tokyo
may already have intervened, was also keeping investors on
alert.
    "In that sense, I don't think people are going to be very
keen to buy stocks while the yen is this weak," said Hiroshi
Namioka, chief strategist at T&D Asset Management. 
    Of the Nikkei's 225 constituents, 151 stocks declined versus
72 advancers. Heavyweights Softbank Group  9984.T  lost 1.6%
while Uniqlo parent firm Fast Retailing  9983.T  slipped nearly
1%. 
    Among individual stocks, earning results and share-specific
news drew out the starkest winners and losers. 
    Shares of chip-related equipment maker Lasertec  6920.T 
jumped 14.9% after the company published an estimate-beating
earnings post market hours on Tuesday. 
    West Japan Railway  9021.T  gained 8.6% on Wednesday
following its decision to buy back 4.1% of its own shares. 
    JGC Holdings  1963.T  was the largest decliner, falling
11.4% on disappointing revenue forecast. 
    

 (Reporting by Brigid Riley; Editing by Sherry Jacob-Phillips)
 ((brigid.riley@thomsonreuters.com;))