Tokyo stocks close lower after BoJ decision

Economy

Tokyo | AFP

Tokyo stocks closed lower Tuesday in cautious trading ahead of results from several major companies, as investors largely ignored the Bank of Japan’s policy decision.

The benchmark Nikkei 225 index fell 0.46 percent, or 134.34 points, to 28,991.89, while the broader Topix index slipped 0.76 percent, or 14.60 points, to 1,903.55.

“It is difficult for many players to take a long position as major companies are set to release their full-year results,” Toshikazu Horiuchi, a broker at IwaiCosmo Securities, told AFP.

“Investors were also sidelined, waiting for results of the Federal Reserve’s latest policy meeting,” which will conclude on Wednesday in the United States, Horiuchi said.

Investors shrugged off the Bank of Japan’s decision to leave its ultra-loose monetary policy in place.

Japan’s central bank also raised its growth forecasts for the world’s third-largest economy, “but they were largely within expectations,” Horiuchi added.

The dollar fetched 108.21 yen in Asian afternoon trade against 108.11 in New York late Monday.

Sony, which will announce full-year results on Wednesday, fell 2.13 percent to 11,450 yen.

Canon erased early gains and closed down 1.31 percent at 2,617 yen on profit-taking after the company boosted its full-year profit forecast.

Japan Airlines edged up 0.04 percent to 2,303 yen after it said its full-year loss would be smaller than expected thanks to cost-cutting efforts.

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AFP