Tokyo's Nikkei Index Ends Flat As Fed Meets

(@FahadShabbir)

Tokyo's Nikkei index ends flat as Fed meets

Tokyo's key Nikkei index trimmed earlier gains and ended flat on Wednesday as investors waited for the US Federal Reserve to conclude a policy meeting

Tokyo, (UrduPoint / Pakistan Point News - 1st Feb, 2023 ):Tokyo's key Nikkei index trimmed earlier gains and ended flat on Wednesday as investors waited for the US Federal Reserve to conclude a policy meeting.

The benchmark Nikkei 225 edged up 0.07 percent, or 19.77 points, to close at 27,346.88, while the broader Topix index slipped 0.15 percent, or 3.04 points, to 1,972.23.

Shares were buoyant in morning trade after Wall Street stocks surged overnight on strong corporate earnings, while fresh US data helped allay concerns over wage inflation.

The quarterly employment cost index was below expectations at one percent, suggesting that "peak inflation in the US is probably behind us", said Stephen Innes of SPI Asset Management.

The data, Innes added, encourages "the shift in markets towards assuming the US will successfully achieve a soft landing".

Global investors were awaiting Fed chair Jerome Powell's press conference later on Wednesday, as they watch for signals on how much further the central bank thinks it needs to go to control inflation.

In Tokyo, markets are focused on corporate earnings, IwaiCosmo Securities said, with several major Japanese companies set to release results later this week.

Also supporting shares is the latest report by the International Monetary Fund that upgraded the global growth forecast for this year, IwaiCosmo added.

The dollar stood at 130.25 yen, against 130.10 yen on Tuesday in New York.

Major tech-related shares gained in Tokyo. Advantest, which makes testing kits for semiconductors, added 4.02 percent to 9,570 yen. SoftBank Group rose 1.79 percent to 6,254 yen.

Nissan added 0.97 percent to 467.8 yen. Toyota rose 0.34 percent to 1,903 yen.

Sony Group dropped 0.95 percent to 11,470 yen. Mitsubishi UFJ Financial Group fell 0.44 percent to 948.5 yen.