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Japanese shares end lower as investors await FOMC outcome

Japanese shares end lower as investors await FOMC outcome

reuters.com · 05/02/2022 02:47
Japanese shares end lower as investors await FOMC outcome

- Japanese shares ended lower on Monday in volatile trade as investors awaited a meeting of the U.S. Federal Open Market Committee later this week, when domestic market will be closed for public holidays, for cues on the aggressiveness of monetary tightening.

The Nikkei share average .N225 fell 0.11% to close at 26,818.53, after opening and trading in positive territory. The broader Topix .TOPX ended 0.07% lower at 1,898.35, also in seesaw trade.

"There was no direction in the market today ... Although the rate hike has been already factored in, there were uncertainties among investors how hawkish the Fed would become," said Shuji Hosoi, senior strategist at Daiwa 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

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 1.24%, followed by chip-testing equipment maker Advantest 6857.T, which fell 4.78%. Robot maker Fanuc 6954.T lost 2.26%.

Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities, said investors scooped up stocks that reported positive earnings, which helped limit market decline.

Murata Manufacturing 6981.T jumped 3.23% and computer maker Fujitsu 6702.T rose 5.03% after they reported robust earnings and announced share buybacks. nT9N2VW00QnT9N2JJ02H

Technology conglomerate Hitachi 6501.T jumped 6.72% 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 124 advancers on the Nikkei index against 96 decliners.

The volume of shares traded on the Tokyo Stock Exchange's main board was 1.23 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;))