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Japanese shares fall ahead of holidays, U.S. FOMC meet

Japanese shares fall ahead of holidays, U.S. FOMC meet

reuters.com · 05/01/2022 23:22
Japanese shares fall ahead of holidays, U.S. FOMC meet

- Japanese shares reversed course to trade lower on Monday, after Wall Street fell sharply last week, while investors were cautious ahead of a series of public holidays and a meeting of the U.S. Federal Open Market Committee.

The Nikkei share average .N225 fell 0.53% to 26,704.60 by the midday break, after opening higher. The broader Topix .TOPX also cut its gains to fall 0.48% to 1,890.50.

"The dramatic losses on Wall Street last week dragged down investor sentiment. Also there is an FOMC meeting during Japan's three-day holiday which starts tomorrow," said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.

Wall Street slid on Friday to its deepest daily losses since 2020, as Amazon AMXN.O slumped following a gloomy quarterly report, and as the biggest surge in monthly inflation since 2005 spooked investors already worried about rising interest rates. .N

"Even after the series of public holidays, there will be some important economic data coming from the U.S. That makes it hard for investors to make active bets."

Japanese market will be closed from Tuesday to Thursday for public holidays known as the Golden Week.

Chip equipment maker Tokyo Electron 8035.T was the biggest drag on the Nikkei, losing 1.8%, followed by chip-testing equipment maker Advantest 6857.T, which fell 4.67%. Robot maker Fanuc 6954.T lost 3.07%.

IwaiCosmo's Arisawa said investors were scooping up stocks that reported positive earnings, which helped limit market decline.

Murata Manufacturing 6981.T jumped 4.82% and computer maker Fujitsu 6702.T rose 3.99% after they reported robust earnings and announced share buybacks. nT9N2VW00QnT9N2JJ02H

Technology conglomerate Hitachi 6501.T rose 5.48% after U.S. private equity company KKR KKR.N agreed to buy the company's logistics arm in a $5.2-billion deal. nL2N2WQ0L1

There were 88 advancers on the Nikkei index against 134 decliners.

The volume of shares traded on the Tokyo Stock Exchange's main board was 0.64 billion, compared to the average of 1.24 billion in the past 30 days.

(Reporting by Junko Fujita;
Editing by Vinay Dwivedi)

((813-4563-2711, junko.fujita@thomsonreuters.com, Reuters Messaging:junko.fujita.reuters.com@reuters.net;))