TOKYO: Japan’s Nikkei index ended flat on Wednesday, with traders on the sidelines ahead of 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 flitted in and out of positive territory, but turned listless by the afternoon to close at 27,663.39. Shares of Sony lifted the broader Topix up 0.10% to 1940.46.
“With the FOMC’s outcome due shortly, it was hard for investors to make a move, which made the market almost flat,” said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.
“The market focus was shifted to individual stocks, such as Sony and others with strong earnings. And shares with positive outcome rose sharply.”
Shares of Sony surged 7.01% after the conglomerate raised its full-year operating profit forecast by 4.5%.
Another heavyweight TDK jumped 6.72% after the sensor maker raised its annual net profit forecast while Subaru rose 3.78% after the automaker tripled its annual operating profit forecast.
Investors refrained from placing active bets as they awaited release of the US Fed policy decision later on Wednesday. Japanese markets are closed on
Thursday for a local holiday.
Tokyo shares close higher extending US rallies
Domestic markets tracked weak overnight finish on Wall Street as US 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.
Toyota Motor fell for a second session, down 0.25%, after posting a worse-than-expected 25% drop in quarterly profit and cut its annual output target.
Shares of Kao tanked 8.71% and weighed on the Nikkei as the cosmetics maker reported lower profit for the latest quarter.
Hino Motors fell 1.44% 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.
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