Japanese stocks slip before Fed; but miners, shippers rise

TOKYO: Japan's Nikkei slipped on Tuesday, reversing earlier gains as investors turned cautious ahead of this week's US Federal Reserve policy meeting.

The Nikkei share average fell 0.3 per cent to 22,866.17, after traversing positive and negative territory. The broader Topix eked out a marginal gain, rising 0.1 per cent to 1,815.08.

The Fed is widely expected to raise interest rates in its two-day policy meeting ending on Wednesday. Investors are now looking for clues on its policy plans for next year.

Large cap stocks fell, with KDDI Corp and Fanuc Corp shedding 1.3 per cent and 1.1 per cent, respectively.

But mining and shipping shares gained, with Inpex Corp soaring 3.5 per cent, Mitsui OSK Lines surging 1.9 per cent and Kawasaki Kisen advancing 1.5 per cent.

Shippers' gains were supported after the Baltic dry index of freight charges rose overnight to its highest level since January 2014.

Banking, securities and insurance stocks were also in demand. Mitsubishi UFJ Financial Group rose 2.3 per cent,

Nomura Holdings gained 1.2 per cent and Dai-ichi Life Holdings was up 0.8 per cent.