Japan’s Nikkei Stock Ends Nearly Flat as Markets Await Key Central Bank Meetings (UPDATE 1)

Reuters

12:30 JST, December 16, 2024 (updated at 17:00 JST)

TOKYO, Dec 16 (Reuters) – Japan’s Nikkei share average ticked lower to close nearly flat on Monday, as caution ahead of major central bank meetings this week largely trumped a rise in heavyweight chip-related shares.

The Nikkei erased early gains to close down 0.03% at 39,457.49, while the broader Topix shed 0.3% to 2,738.33.

“There’s certainly a strong sense that investors are taking a wait-and-see approach” ahead of the central bank meetings this week, said Hiroshi Namioka, chief strategist at T&D Asset Management. The U.S. Federal Reserve is widely expected to deliver another 25 basis points interest rate cut on Wednesday, putting the focus on hints regarding its rate path outlook in 2025. Meanwhile, Reuters and other media outlets have reported that the Bank of Japan is leaning toward keeping rates steady at its Dec. 18-19 meeting.

Isuzu Motors, up 1.9%, was among exporter shares to gain on a softer yen, although the impact of the weaker currency was limited as investors adjusted positions.

Toyota slipped 0.2%, Honda Motor fell 0.5%, and Mitsubishi Motors dropped 0.9%.

The yen was last hovering around 153.73 per U.S$. , struggling to recover from its worst week since September.

Chip-related shares tracked their U.S. peers higher, after the Philadelphia SE Semiconductor Index surged 3.4% on Friday amid an otherwise subdued session on Wall Street.

Chip-testing equipment maker Advantest, an Nvidia supplier, gave the biggest overall lift with a 1.9% rise.

Socionext rallied 8.1% to become the top percentage gainer on the benchmark. However, Tokyo Electron slipped into the red in afternoon trade, falling 0.9%.

Among other major shares, artificial intelligence-focused startup investor SoftBank Group advanced 1% and Chugai Pharmaceutical climbed 2.7%.

Uniqlo brand owner Fast Retailing stumbled 0.9%, while entertainment conglomerate Sony Group declined 1%. (Reporting by Brigid Riley; Editing by Sumana Nandy and Varun H K)