Japan shares edge up in cautious trade as central bank meetings loom

By Stanley White
TOKYO, March 17 (Reuters) - Japanese stocks edged a tick
higher on Wednesday as investors bought individual shares with
bright earnings prospects, though the overall mood was cautious
in the run-up to key meetings by the U.S. Federal Reserve and
the Bank of Japan.
The Nikkei 225 Index .N225 edged up 0.16% to 29,968.06 by
0215 GMT, while the broader Topix .TOPX rose 0.03% to
1,982.11.
Sentiment for Japanese equities remained fairly positive due
to a healthy outlook for the global economy and progress in
COVID-19 vaccine rollouts, analysts said.
Japanese stocks are, however, likely to move in a narrow
range for the remainder of the month as investors retreat to the
sidelines with the fiscal year ending on March 31.
The focus shifts to a Fed meeting ending later in the day,
where some U.S. policymakers may bring forward their
expectations for rate hikes due to an improving economy.
Investors also keenly await the outcome of a BOJ meeting
that is expected to end later in the week. Japan's central bank
could abandon a numerical target for exchange-traded fund (ETFs)
purchases, but analysts say the stock market is strong enough to
continue rising if that did happen. "If there is any disappointment in reaction to the BOJ, it
won't last long," said Takashi Hiroki, chief strategist at Monex
Securities.
"Japanese stocks have proven that they don't need the BOJ to
buy ETFs to rise sharply. Once we reach April a lot of new money
will enter the stock market."
Stocks that gained the most among the top 30 core Topix
names were Takeda Pharmaceutical Co Ltd 4502.T up 2.12%,
followed by Shin-Etsu Chemical Co Ltd 4063.T gaining 1.79%.
Tokyo Electric Power 9501.T fell 8.88% after Japan's
atomic regulator found safety breaches at the company's
Kashiwazaki Kariwa station. Honda Motor Co 7267.T fell 1.32% after the automaker said
it will halt production at a majority of U.S. and Canadian auto
plants for a week due to supply-chain problems.