Japan Stocks mixed ahead of Fed meeting outcome

Headline indices of the Japan share market closed mixed on Wednesday, 30 October 2019, as some investors elected for profit booking amid concerns over U.S.-China trade deal and jitters ahead of the outcome of the U.S. Federal Reserve's policy-setting meeting later in the day and the Bank of Japan's policy announcement this week. At closing bell, the 225-issue Nikkei Stock Average was down 131.01 points, or 0.57%, to 22,843.12, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange added 3.22 points, or 0.19%, at 1,665.90.

Total 21 issues of the 33 industry category of Topix index inclined into positive territory, with Foods, Precision Instruments, Air Transportation, Fishery, Agriculture & Forestry, Securities & Commodities Futures, and Pharmaceutical issues being notable gainers, while Oil & Coal Products, Iron & Steel, Nonferrous Metals, and Glass & Ceramics Products issues were notable losers.

 

Expectations of another interest rate cut by the Federal Reserve when it concludes its two-day meeting on Wednesday has supported stocks. The U.S. central bank is largely expected to lower interest rates by 25 basis points. That would be the third time this year the Fed cuts rates. However, investors will also look for clues about the Fed's policy decisions in the future.

But, indexes pulled back from intraday peak amid concerns over U.S.-China trade deal after a U.S. administration official told that Washington and Beijing are continuing to work on an interim trade agreement, but it may not be completed in time for the leaders of the two countries to sign in Chile next month.

ECONOMIC NEWS: Japan Retail Sales Spike 9.1% On Year In September- Japan retail sales surges 9.1% on year in September, following the 1.8% gain in August, the Ministry of Economy, Trade and Industry said on Wednesday. On a seasonally adjusted monthly basis, retail sales spiked 7.1%, up from 4.6% in the previous month. Large retailer sales surged 10.0% on year, up sharply from 0.3% a month earlier. Wholesale sales rose an annual 2.6% after falling 4.7% in August.

CURRENCY NEWS: The Japanese yen, often viewed as a safe-haven currency in times of economic uncertainty, was tad stronger against greenback on Wednesday. The Japanese yen traded at 108.84 against the dollar after strengthening from levels above 108.9 yesterday.

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