By Kevin Buckland
TOKYO, – Japan’s Nikkei share average edged lower on Tuesday, tracking overnight declines on Wall Street, but gains in chip-sector stocks limited losses.
Investors turned cautious in the lead-up to the U.S. Federal Reserve’s policy decision on Wednesday, with an interest rate cut widely expected but questions over the central bank’s subsequent path of monetary policy amid stark divisions within the board.
Japan’s stock market shrugged off Monday’s powerful offshore earthquake, which ultimately did minor damage and did not trigger a massive tsunami, despite initial warnings.
The Nikkei declined less than 0.1% to sit at 50,552.48, with half an hour remaining until the midday trading recess.
The broader Topix slipped 0.1% to 3,381.09.
“Ahead of an important risk event in the form of the Fed meeting, we’re seeing some selling pressure in Japanese stocks,” said Maki Sawada, an equities strategist at Nomura Securities.
“However, I don’t think this is a situation where stocks just keep falling, rather more like holding firm around current levels.”
Uniqlo owner Fast Retailing’s 1.4% decline was decisive, shaving 79 points from the Nikkei due to its heavy weighting.
At the same time, many semiconductor-related shares gained strongly, following their U.S. peers.
Chip-making tool manufacturers Disco and Tokyo Electron climbed 5.2% and 1.2%, respectively. Chip-testing equipment makers Lasertec and Advantest saw advances of 2% and 0.6% respectively.
Of the Nikkei’s 225 components, 90 rose compared with 134 that fell, while one traded flat.
This article was generated from an automated news agency feed without modifications to text.
