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Nikkei dips as investors await Fed meeting

Published 06/18/2019, 11:13 AM
Updated 06/18/2019, 11:20 AM
Nikkei dips as investors await Fed meeting

* Insurers underperform on expectations for lower rates
* Investors unlikely take positions ahead of Fed

By Ayai Tomisawa
TOKYO, June 18 (Reuters) - Japan's Nikkei edged lower in
choppy trade on Tuesday but most investors stayed on the
sidelines ahead of a U.S. central bank policy decision later in
the week.
The Nikkei share average .N225 fell 0.3% to 21,067.95
points by the midday break.
Expectations that the Federal Reserve will start cutting
interest rates has helped global markets recover from heavy
selling sparked by intensifying global trade disputes.
While the Fed Reserve is unlikely to cut rates at its
meeting on Wednesday, its statement will be analysed for clues
on possible near-term easing moves, analysts said. "The market has nearly priced in hopes for a U.S. rate cut
eventually since the Fed chairman made remarks on June 4
suggesting a lower rate," said Takuya Takahashi, a strategist at
Daiwa Securities, adding that the Nikkei will likely trade
around 21,500 in relief if the decision is in line with market
hopes.
Insurers underperformed on expectations for lower rates.
Japan Post Insurance 7181.T declined 0.8% and T&D Holdings
8795.T skidded 1%.
Tsuruha Holdings 3391.T , a drugstore operator, bucked the
weakness and jumped 5.4% after it said it expects its net profit
to grow 5.1% to 26.1 billion yen for the year ending May 2020.
Exporters were mixed, with Toyota Motor Corp 7203.T rising
0.6%, Sony Corp 6758.T shedding 0.7% and Tokyo Electron
8035.T dropping 1.2%
Tateru Inc 1435.T , whose employees were involved in
hundreds of cases of tampering with customer loan documents last
year, tumbled 16.5% after the Nikkei business daily reported
that the land ministry decided to suspend operations.
The broader Topix .TOPX dropped 0.1% to 1,538.22.


(Editing by Kim Coghill)

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