Tokyo: Stocks end lower ahead of Fed policy meeting

[TOKYO] Japanese shares ended lower on Tuesday (Nov 2) as investors remained on the sidelines ahead of a pivotal US Federal Reserve meeting that could reveal more about its plans to taper stimulus measures and hike rates.

The Nikkei share average fell 0.43 per cent to 29,520.90, a day after posting its biggest daily gain since June following a solid election victory by Prime Minister Fumio Kishida's ruling coalition. The broader Topix lost 0.64 per cent to 2,031.67.

"The market is looking to what the Federal Reserve will do with its tapering," said Yuya Fukue, a trader at Rheos Capital Works.

"While November tends to be a good month for stocks, the stock market could be vulnerable if the pace of the Fed's tapering is quicker than expected." The Fed will announce its policy decision at the end of its 2-day meeting on Wednesday (Nov 3) when Japanese markets will be shut for a public holiday.

Domestic earnings results also weighed on markets, as Pola Orbis dropped 6.8 per cent after the cosmetics maker reported disappointing quarterly results.

Ship builder Hitachi Zosen lost 6.6 per cent, while drugmaker Kyowa Kirin shed 6.4 per cent also on earnings disappointment.

Trading house Mitsui & Co dropped 4 per cent after its quarterly results came in line with analyst forecasts but rival Marubeni rose 3.4 per cent after a consensus-beating earnings.

Other gainers included electronic parts makers TDK and Kyocera that jumped 8.7 per cent and 5.3 per cent, respectively, on brisk results.

Dexerials rose by its daily limit of 21.4 per cent, after the maker of the optical and electronic materials posted strong profits, and announced a dividend hike and stock buyback plan.

Still, decliners outnumbered gainers by a ratio of 3 to 1 and all but 4 of the Topix 33 industry subindices were in the red as a wide range of shares came under pressure from profit-taking ahead of a market holiday.

REUTERS