Tokyo stocks open lower

TOKYO: Tokyo stocks opened lower on Tuesday as investors awaited a key Bank of Japan policy decision later in the day.

The benchmark Nikkei 225 index was down 0.09 percent, or 30.65 points, at 32,728.33 in early trade, while the broader Topix index slipped 0.15 percent, or 3.49 points, to 2,313.37.

The Bank of Japan (BoJ) will conclude its two-day policy meeting later in the day, with BoJ watchers widely expecting the central bank to keep its super-loose monetary policy in place for now.

However, speculation is growing that the bank will end its negative interest rate policy as early as January, analysts said.

Earlier this month, BoJ Governor Kazuo Ueda said handling monetary policy would “become even more challenging from the year-end and heading into next year,” prompting the yen to surge against the dollar amid speculation the bank would tighten its policy soon.

“Following governor Ueda’s ‘challenging’ comment, speculation is growing that a major revision to the bank’s monetary easing policy will be made soon,” said Yuta Okamoto, market analyst for Tokai Tokyo Research Institute.

Tokyo stocks close lower

The speculation has sent the yen higher against the dollar, which is weighing on the Tokyo stock market, he said.

“However, dominant views in the market (are that) the BoJ will keep its policy in this meeting,” he said.

“And if the decision – including governor Ueda’s press conference after the market close – turns out to (include content) that would stop the yen’s appreciation, that would” support Japanese shares, he said.

The dollar fetched 142.36 yen in early Asian trade, against 142.73 yen in New York on Monday.

Among major shares in Tokyo, Nippon Steel was down 5.59 percent at 3,058 yen after its announcement the Japanese steelmaker agreed to buy US Steel Corp for $14.1 billion, sparking criticism about the firm’s ownership in an industry crucial to US national security.

Drug maker Daiichi Sankyo was down 2.10 percent at 3,921 yen.

Panasonic was off 1.67 percent at 1,354 yen. Trading house Itochu was down 1.50 percent at 5,662 yen.