Tokyo shares end lower ahead of key releases
27 Sep 2017 - 10:21
Tokyo: Tokyo shares closed slightly lower Wednesday, with traders on the sidelines ahead of key events including the unveiling of Donald Trump's tax reforms and the release of Japanese economic data later in the week.
The bellwether Nikkei 225 index slipped 0.31 percent, or 63.14 points, to close at 20,267.05. The broader Topix index ended down 0.50 percent or 8.31 points at 1,664.43.
A relatively cheaper yen offset some of the downward pressure on the market, analysts said. The dollar fetched 112.46 yen in Tokyo, up from 112.23 yen in New York.
After a round of selling in early Tokyo trade, bargain hunters came in to provide support for the market, Okasan Online Securities said in a commentary.
"In the afternoon session, investors' wait-and-see attitude became more pronounced, as they waited for the release of the US tax reform proposal," Okasan said.
Any hints about the deal could provide clues for the global market, analysts said.
"Officially not due to be released until tonight but prone to be comprehensively leaked during our morning, the US administration and Republican leadership are slated to jointly reveal their framework for tax reform on Wednesday," National Australia Bank's head of FX Strategy Ray Attrill said in a client note.
Tokyo players also refrained from making major moves before Friday's release of the consumer price index, a key gauge for the Bank of Japan's monetary policy, and factory output, among others.
During morning trade, popular Tokyo governor Yuriko Koike officially launched a new party, less than a month ahead of a snap election in Japan.
Pundits see her move as a potential blow to Prime Minister Shinzo Abe's government but the mainstream scenario is that he will stay in office even if his government loses some seats.
Among Tokyo shares, Nissan dropped 2.63 percent to 1,128.5 yen and Toyota lost 0.98 percent to 6,748 yen.
But game giant Nintendo climbed 1.06 percent to 40,850 yen while Panasonic was up 0.78 percent at 1,611.5 yen.