Japan's Nikkei little changed ahead of Fed meeting outcome

NITTO DENKO

27/07/2022 04:06

TOKYO, July 27 (Reuters) - Japan's Nikkei cut early losses
to trade almost flat on Wednesday, helped by heavyweight
chip-related stocks and higher U.S. futures, with investors
remaining cautious ahead of a rate decision by the U.S. Federal
Reserve later in the day.
    By 0217 GMT, the Nikkei  .N225  inched up 0.1% to 27,671.72
and the broader Topix  .TOPX  inched 0.03% lower at 1,942.62.
    The benchmark index opened with a small declines after Wall
Street ended sharply lower Tuesday, as a profit warning by
Walmart  WMT.N  dragged down retail shares and exceptionally
weak consumer confidence data also fuelled fears about spending.
 .N 
    The Federal Reserve later on Wednesday is expected to
announce a 0.75 percentage point interest rate hike to fight
inflation, with markets pricing about a 10% risk of a larger
increase.  urn:newsml:reuters.com:*:nL1N2Z21XC
    "There won't be a major surprise from the FOMC (Federal Open
Market Committee) but investors just want to confirm the outcome
before making bets," said Takatoshi Itoshima, strategist at
Pictet Asset Management Japan.
    "After this major event, investors will look into details in
each corporate outlook and selectively buying stocks." 
    In Japan, chip-related heavyweights Tokyo Electron  8035.T 
and Advantest  6857.T  boosted the Nikkei, jumping 3.14% and
2.55%.
    Defensives were strong, with the railway sector  .IRAIL.T 
rising 1.15% to become the top gainer among the Tokyo Stock
Exchange's 33 industry sub-indexes. The drug sector  .IPHAM.T 
rose 1.11%, with Astellas Pharma  4503.T  climbing 2.67%. 
    Uniqlo clothing shop owner Fast Retailing  9983.T  weighed
on the Nikkei the most, slipping 1.27%. Technology investor
SoftBank Group  9984.T  lost 0.76% and materials maker Nitto
Denko  6988.T  fell 1.91%.
    Canon  7751.T  slipped 2.03% even as the camera maker raised
its full-year operating profit forecast.  urn:newsml:reuters.com:*:nXB0OMDOU2
    There were 84 advancers on the Nikkei index against 133
decliners.

 (Reporting by Junko Fujita; editing by Uttaresh.V)
 ((813-4563-2711, junko.fujita@thomsonreuters.com, Reuters
Messaging:junko.fujita.reuters.com@reuters.net;))