TOKYO, Nov. 2 (Xinhua) — Japan’s benchmark Nikkei stock index ended flat Wednesday, as investors hit the sidelines to await the outcome of the U.S. Federal Reserve’s policy meeting later in the day and hints as to the future course of its aggressive rate hikes.
The 225-issue Nikkei Stock Average shed 15.53 points, or 0.06 percent, from Tuesday to close the day at 27,663.39.
The broader Topix index, meanwhile, added 1.96 points, or 0.10 percent, to finish at 1,940.46.
Local brokers said trade was largely directionless as most investors were keenly awaiting clues from the Fed for the future direction of its interest rate hikes beyond December, with a 75 basis point hike largely thought to be the Fed’s announcement in November.
“With the FOMC’s outcome due shortly, it was hard for investors to make a move, which made the market almost flat,” Shigetoshi Kamada, general manager of the research department at Tachibana Securities, was quoted as saying.
“The market focus was shifted to individual stocks, such as Sony and others with strong earnings. And shares with positive outcomes rose sharply,” Kamada said.
Other analysts added that former ideas holding that the Fed may take a less hawkish approach to its future rate hikes were countered by better-than-expected U.S. economic data recently, such as job openings and manufacturing data, raising the prospect of further aggressive interest rate hikes by the Fed.
“The data showed that the country’s economy is not weak enough to let the Fed reduce the pace of rate hikes. It is likely that the central bank will avoid showing a dovish stance that may lift stocks.” Koichi Fujishiro, a senior economist at the Dai-ichi Life Research Institute, was quoted as saying.
“Such concerns are weighing on the Tokyo market as well,” Fujishiro said.
By the close of play, decliners comprised precision instrument, service, and electric power and gas issues.
Those that gained the most included iron and steel, and oil and coal product issues.
Sony Group was a notable winner, surging 7.0 percent, after the electronics and entertainment conglomerate raised its net profit forecast for the year through March and said sales would be boosted by a weak yen.
After raising its annual net profit forecast and upwardly revising its earnings projection for the business year through March, fellow heavyweight TDK leaped 6.7 percent, while Subaru accelerated 3.8 percent after tripling its annual operating profit forecast.
Toyota Motor skidded down for a second-straight session, losing 0.25 percent, after releasing a disappointing 25 percent fall in quarterly profit while slashing its annual production target.
Cosmetic maker Kao was another notable loser, plunging 8.7 percent, after reporting a downbeat operating profit for the January-September period.
Issues that fell outpaced those that rose by 1,019 to 739, while 79 ended the day unchanged.
On the Prime Market on Wednesday, 1,430.69 million shares changed hands, rising from Tuesday’s volume of 1,232.55 million shares.
The turnover came to 3,379.89 billion yen (22.97 billion U.S. dollars).