Tokyo stocks slip ahead of Powell testimony

TOKYO: Tokyo stocks ended lower Wednesday as investors awaited Fed Chair Jerome Powell's address to Congress later in the day for clues to the US central bank's policy direction.

The benchmark Nikkei 225 index fell 0.38 percent, or 109.75 points, to 28,608.49, while the broader Topix index slipped 0.23 percent, or 4.48 points, at 1,963.16.

The Nikkei started the day in negative territory after Wall Street ended lower overnight, as US traders took a breather following recent rallies, SMBC Nikko Securities said.

"Some investors looked for bargains, but overall Asian markets have been rather soft. The Nikkei index lacked the energy to shoot into positive territory," the brokerage added.

Shanghai was 1.02 percent lower, while Hong Kong was down 0.76 percent.

Given the anaemic mood in the region, the Nikkei index became stuck in directionless trade, Okasan Online Securities said.

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"In the afternoon session, the Nikkei zigzagged just above 28,600 yen. It couldn't go up nor down."

The Wall Street decline also pressured the Tokyo market, Okasan said.

After bargain hunting helped the Nikkei trim losses, "investors took a wait-and-see stance ahead of the congressional testimony by FRB Chair Powell," Okasan added.

The dollar fetched 110.49 yen, against 110.62 yen in New York late Tuesday.

SoftBank Group spent most of the session up but slipped into negative territory near the close and ended down 0.12 percent to 7,626 yen.

Maritime logistics firm Nippon Yusen gave up 3.72 percent to 5,180 yen.

Sony reversed earlier losses and ended up 0.35 percent at 11,605 yen. Honda gave up earlier gains and ended down 0.28 percent at 3,577 yen.

Advantest, maker of tools to test semiconductors, edged up 0.21 percent to 9,430 yen.