Japan's Nikkei flat as investors await Fed verdict; Sony shines

TDK

02/11/2022 02:39

TOKYO, Nov 2 (Reuters) - Japan's Nikkei index was
trading flat on Wednesday, with traders on the sidelines before
a looming Federal Reserve rate decision that should also give
clues on the future policy path, although investors scooped up
shares of Sony Group on robust outlook.
    The Nikkei index  .N225  held its ground at 27,689.67, as of
0202 GMT, while Sony lifted the broader Topix  .TOPX  up 0.26%
to  1943.50.
    "Investors scooped up stocks with robust earnings, which was
 reflected in share prices directly," said Maki Sawada, a
strategist at Nomura Securities at a media briefing. 
    Shares of Sony  6758.T  surged 8.61% to become the biggest
boost for the Nikkei and the Topix, after the conglomerate
raised its full-year operating profit forecast by 4.5%.
    Another heavyweight TDK  6762.T  jumped 5.31% after the
sensor maker raised its annual net profit forecast.   
    Investors refrained from placing active bets as they awaited
release of the U.S. Fed policy decision later on Wednesday.
    Japanese markets are closed on Thursday for a local holiday.
    Domestic markets tracked weak overnight finish on Wall
Street as U.S. stocks closed lower after data indicated that the
labour market remained on solid ground, dimming hopes the Fed
might have enough reason to begin reducing the size of its
interest rate hikes.  .N 
    Toyota Motor  7203.T  fell for a second session, down 0.27%,
after posting a worse-than-expected 25% drop in quarterly profit
and cut its annual output target.
    Shares of Kao  4452.T  tanked 8.12% and weighed on the
Nikkei as the cosmetics maker reported lower profit for the
latest quarter.   
    Hino Motors  7205.T  fell 0.64% even after Toyota Motor's
truck and bus unit received a 200 billion yen ($1.36 billion) of
commitment line from Mitsubishi UFJ Financial Group  8306.T . 
    ($1 = 147.3200 yen)
 (Reporting by Junko Fujita; Editing by Sherry Jacob-Phillips)
 ((junko.fujita@thomsonreuters.com;))