Monday, 17 June 2024

Nikkei closes lower before Fed, BOJ meetings ‎


اقرأ المزيد

Japan’s Nikkei index closed lower on Tuesday, with chip-related stocks leading the decline amid investor caution ahead of central bank meetings in the United States and Japan.

According to Reuters, the Nikkei index fell 0.87% to 33,242.59 points. Tokyo Electron shares fell 5.23 percent, recording the worst performance on the index

“Investors were cautious ahead of two major events, the meetings of the central banks in the United States and Japan,” said Takamasa Ikeda, senior portfolio manager at GCI Asset Management.

Advantest shares, which manufacture chip testing equipment, lost 4.03%, and Renesas Electronics, which manufactures chips, fell 4.75%.

The shares of SoftBank Group, which invests in emerging technology companies, fell 3.29% after the shares of its chip design company, Arm Holdings, declined on the second day of trading.

Financial markets expect the Federal Reserve to keep interest rates unchanged on Wednesday, according to the CME’s FeedWatch tool, but the focus will be on obtaining guidance from the central bank regarding the next stage.

The Bank of Japan will also announce its policy decision on Friday after concluding its two-day monetary policy meeting.

Investors are awaiting statements by Kazuo Ueda, Governor of the Bank of Japan, who told a newspaper earlier this month that the central bank may obtain enough data by the end of the year to determine whether conditions are right to raise short-term interest rates.

The broader Topix index recovered from its early losses and closed up 0.08% at 2430.39 points, with Toyota Motor Company shares rising 2.07% and Mitsubishi UFJ Financial Group rising 2.56%.

The banking sector rose 2.08%, and auto makers shares advanced 2.06%.