Tokyo's Nikkei Ends At Year's High Before Fed Meeting


Tokyo's Nikkei ends at year's high before Fed meeting

TOKYO, , (UrduPoint / Pakistan Point News - 13th Dec, 2016 ) - Tokyo's benchmark index on Tuesday ended at its highest level for the year, ahead of a key US central bank meeting, but brewer Asahi dived on talk of its whopping purchase of AB InBev's Eastern European business.

The US Federal Reserve's policy committee is widely expected to hike its key interest rate after a two-day meeting that begins later Tuesday. In morning trade, shares eased after five sessions of gains as investors adjusted positions ahead of the gathering.

"But investors who are still trying to catch up with the recent rallies bought on dips in afternoon trade," said Toshikazu Horiuchi, a broker at IwaiCosmo Securities. "This underlined the strength of the current buying sentiment," he added.

The Nikkei 225 index rose 0.50 percent, or 95.49 points, to end the day at 19,250.52, while the broader Topix index of all first-section issues was up 0.58 percent, or 8.82 points, to close at 1,540.25.

Stocks have soared since last month's election of Donald Trump as US president on a pro-growth platform of tax cuts and infrastructure investment, which boosted the Dollar against other major currencies.

Toyota rose 0.69 percent to 7,050 Yen but Nintendo tumbled 3.82 percent to 28,275 yen.

Brewer Asahi Group plunged 4.60 percent to 3,497 yen following news reports that it agreed to pay nearly $8 billion for AB InBev's beer operations in five Eastern European countries.

The deal was confirmed after markets closed. Japanese electronics giants Sony, Panasonic and Sanyo were fined a total of 166 million Euros ($176 million) by EU regulators on Monday for colluding on prices for rechargeable batteries.

However, Sony ended up 0.35 percent at 3,378 yen while Panasonic gained 0.86 percent to 1,282.5 yen as they shrugged off the fine. Sanyo is not listed. Major electronics parts maker Nidec fell after US-based research firm Muddy Waters said it was short-selling the firm.

It slipped 0.08 percent at 9,880 yen. "We view Nidec as a gigantic stock promotion," Muddy Waters Research said, adding that it valued the shares at just 4,764 yen. Stocks linked to casino operations were mixed as Japan's upper house of parliament debates legalising betting parlours.

Backers hope to get it passed before Wednesday, the last day of the current parliamentary session. Konami firmed 1.09 percent to 4,160 yen, while Japan Cash Machine, a bill counting device maker, rose 1.74 percent to 1,513 yen Amusement machine maker Sega Sammy fell 0.71 percent to 1,803 yen.