Tokyo stocks close down 0.65pc
September 17, 2013 - 9:13:15 am
TOKYO: Tokyo stocks eased 0.65 percent in post-holiday trade on Tuesday as dealers await a closely watched meeting of the US Federal Reserve to find out its plans for its stimulus programme.
The benchmark Nikkei 225 index closed down 93.00 points at 14,311.67, while the Topix index of all first-section shares was 0.31 percent, or 3.64 points, lower at 1,181.64. Markets were closed on Monday for a public holiday.
The fall comes after the Dow climbed 0.77 percent on Monday as Larry Summers, perceived as in favour of tighter monetary policy, pulled out of the race to lead the US central bank.
"Ahead of the Federal Open Market Committee meeting, investors will likely take a wait-and-see approach," said Kenichi Hirano, operating officer at Tachibana Securities.
The Fed is to hold a policy meeting on Tuesday and Wednesday amid speculation it will start reeling in its $85-billion-a-month bond-buying programme.
Hirano said the market had already factored in Fed tapering in September.
"The question is the scale of the cutback. If it's in line with a market view of $10 billion, investors will react positively," he said. "If it's $5 billion, it will be positive. But if it's over $15 billion, it's a negative for the market," he told Dow Jones Newswires.
The Fed's quantitative easing scheme has been largely credited with propping up global equity markets.
Exporters were mixed in Tokyo. Canon rose 0.93 percent to 3,230 yen and Sony was up 0.90 percent at 2,115 yen while Toyota Motor eased 0.63 percent to 6,240 yen.
Nissan was down 0.50 percent at 993 yen
In forex trade the dollar bought 99.12 yen against 99.11 yen on Monday in New York. (AFP)