Japan’s Nikkei Ends Lower Ahead of US, Local Central Bank Meetings

Reuters

16:52 JST, October 30, 2023

TOKYO, Oct 30 (Reuters) – Japan’s Nikkei share average fell on Monday, tracking Wall Street’s declines in the previous session and as caution ahead of central bank meetings domestically and in the United States hurt risk appetite.

The Nikkei .N225 closed 0.95% lower at 30,696.96, while the broader Topix .TOPX slipped 1.04% to 2,231.24.

“The Nikkei was dragged down by the losses in the Dow Jones over the weekend. And investors hesitated to buy stocks as they awaited policy decisions at central bank meetings in the U.S. and Japan,” said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.

“Also, investors wanted to wait for the announcement of more corporate outlook as some companies were heavily sold after disclosing disappointing outlooks.”

On Friday, the Dow Jones Industrial Average .DJI lost 1.12% and the S&P 500 .SPX lost 0.48%, as investors digested a hectic week of mixed earnings and economic data that seemed to support the “higher for longer” interest rate scenario. .N

The Bank of Japan started its two-day policy meeting on Monday under growing pressure to shift further away from its controversial bond yield control as the 10-year bond yield nears the bank’s policy cap of 1%.

The U.S. Federal Reserve will keep its key interest rate on hold on Nov. 1 and may wait longer than previously thought before cutting it, according to economists in a Reuters poll, as the central bank’s higher-for-longer message gains traction.

Among individual shares, Hino Motors tumbled 18.67% to 435.2 yen, just above its daily limit low after the automaker flagged an annual net loss, changing the forecast from a profit.

The automakers index .ITEQP. lost 2.83%, the most among the Tokyo Stock Exchange’s 33 industry sub-indexes, with Toyota Motor 7203.T losing 2.44%.

Omron 6645.T fell to its daily limit, tanking 15.83% after the healthcare equipment maker cut its annual profit forecast.