Japan's Nikkei gives up gains to trade lower ahead of US inflation data

Recruit Holdings

13/09/2023 04:11

TOKYO, Sept 13 (Reuters) - Japan's Nikkei share average
gave up small gains to trade lower on Wednesday ahead of U.S.
inflation, but the losses were limited as investors bought value
shares that withstand higher rates.
    The Nikkei  .N225  was down 0.31% to 32,675.89 by the midday
break, after rising as much as 0.3% earlier in the session. The
broader Topix  .TOPX  was down 0.2% to 2,375.13.
    "The market had little direction today, in part as investors
awaited U.S. inflation data," said Hideyuki Suzuki, general
manager of investment research at SBI Securities.
    "But under this environment, investors wanted to buy value
stocks and that limited the losses." 
    U.S. August consumer price index (CPI) data is due later in
the day, while data on producer prices is scheduled for
Thursday. Both sets of data will help gauge the Federal
Reserve's outlook on interest rates ahead of its meeting on
Sept. 20.
    Investors also braced for signs the Bank of Japan (BOJ) will
relax its ultra-easy policy at its two-day policy meeting next
week, after Governor Kazuo Ueda signalled an early end to the
bank's negative rate in an interview with a local newspaper.
    Technology start-up investor Softbank Group  9984.T  fell
2.03% to drag the Nikkei the most, followed by staffing agency
Recruit Holdings  6098.T , which lost 2.27%.
    Chip-testing equipment maker Advantest  6857.T  slipped 1%.
    Bucking the trend, phone company KDDI  9433.T  rose 1.53% to
provide the biggest support to the Nikkei. 
     Mitsubishi UFJ Financial Group  8306.T  climbed 2.58% to
become the biggest support for the Topix.  
    Yen's retreat overnight improved sentiment, said Hajime
Sakai, chief fund manager at Mito Securities, sending exporter
shares higher. 
    Toyota Motor  7203.T  rose 0.6%, which also provided support
to the Topix.   
 

 (Reporting by Junko Fujita; Editing by Janane Venkatraman)
 ((junko.fujita@thomsonreuters.com;))