Tokyo’s blue-chip shares fall ahead of earnings, rate meetings

TOKYO: Tokyo’s blue-chip shares fell on Tuesday as investors adjusted their positions ahead of key interest-rate decisions by international central bankers along with earnings announcements from major businesses.

The benchmark Nikkei 225 index lost 0.06 percent, or 18.43 points, to 32,682.51, while the broader Topix index rose 0.18 percent, or 4.20 points, to 2,285.38.

Overnight gains of US shares helped the market start from the positive region.

But buyers’ energy quickly dissipated as investors adjusted positions ahead of key central bank meetings and major corporate earnings. The Nikkei spent most of the day underwater, while the Topix stayed in a tight range.

The dollar hovered around 141.45 yen in Asian trade, little changed from 141.51 yen in New York late Monday.

“The mood of investors was that they wanted to wait for major upcoming events, like central bank meetings in Japan, the US and Europe, as well as earnings releases from major businesses,” IwaiCosmo Securities said in a note.

Still, gains in Chinese and Hong Kong shares provided general support for the Tokyo market.

This week, global markets will digest a barrage of major corporate earnings including Google parent Alphabet, Microsoft and Meta.

The Federal Reserve is widely expected to lift interest rates on Wednesday, and the central bank’s statements will be scrutinised for clues on possible additional increases later in the year.

The European Central Bank and the Bank of Japan will also hold meetings this week.

Markets had “fully priced” in a 25-basis-point hike by the US central bank, Stephen Innes, managing partner of SPI Asset Management, said in a note.

With signs of US inflation slowing, “many think this could be the last hike of the cycle”, he added.

Japan’s Nikkei advances as weaker yen spurs carmaker rally

Among major shares, stocks that benefit from Chinese demand held firm.

Yaskawa Electric gained 3.52 percent to 6,355. Hitachi Construction Machinery added 1.25 percent to 4,284 yen.

Toyota rose 0.88 percent to 2,344.5 yen.

Construction equipment maker Komatsu rose 0.97 percent to 3,956 yen.

SoftBank Group lost 0.88 percent to 6,966 yen. Sony Group fell 0.83 percent to 13,155 yen, while Nintendo gave up 1.04 percent to 6,443.

Fast Retailing, which operates the Uniqlo brand, lost 1.27 percent to 34,190.