Japanese stocks slide, trade subdued as investors await Fed meeting
Insurers under perform on expectations for lower rates.
Japan's Nikkei dropped to a 1-1/2-week low in choppy trade on Tuesday but most investors stayed on the sidelines ahead of a US central bank policy decision later in the week.
The Nikkei share average ended 0.7 per cent lower at 20,972.71, the lowest close since June 7. The broader Topix dropped 0.7 per cent to 1,528.67.
Trading was subdued, however, with only 1 billion shares changing hands, against a daily average last month of around 1.4 billion.
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 is unlikely to cut rates at its two-day meeting, ending on Thursday, its concluding statement will be analysed for clues on possible near-term moves to ease, analysts said.
"The market has nearly priced in hopes for a US 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 under performed on expectations for lower rates. Japan Post Insurance declined 1.2 per cent and T&D Holdings skidded 1.1 per cent.
Outperforming the broader market, Tsuruha Holdings , a drugstore operator, jumped 4 per cent after it said it expects its net profit to grow 5.1 per cent to 26.1 billion yen for the year ending May 2020.
Exporters were mixed, with Nintendo Co rising 0.7 per cent, Sony Corp shedding 0.2 per cent and Tokyo Electron dropping 1 per cent.
Tateru Inc, whose employees were involved in hundreds of cases of tampering with customer loan documents last year, tumbled 18.6 per cent after the Nikkei business daily reported that the land ministry decided to suspend operations.
The Nikkei share average ended 0.7 per cent lower at 20,972.71, the lowest close since June 7. The broader Topix dropped 0.7 per cent to 1,528.67.
Trading was subdued, however, with only 1 billion shares changing hands, against a daily average last month of around 1.4 billion.
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 is unlikely to cut rates at its two-day meeting, ending on Thursday, its concluding statement will be analysed for clues on possible near-term moves to ease, analysts said.
"The market has nearly priced in hopes for a US 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 under performed on expectations for lower rates. Japan Post Insurance declined 1.2 per cent and T&D Holdings skidded 1.1 per cent.
Outperforming the broader market, Tsuruha Holdings , a drugstore operator, jumped 4 per cent after it said it expects its net profit to grow 5.1 per cent to 26.1 billion yen for the year ending May 2020.
Exporters were mixed, with Nintendo Co rising 0.7 per cent, Sony Corp shedding 0.2 per cent and Tokyo Electron dropping 1 per cent.
Tateru Inc, whose employees were involved in hundreds of cases of tampering with customer loan documents last year, tumbled 18.6 per cent after the Nikkei business daily reported that the land ministry decided to suspend operations.