TOKYO: Tokyo’s key Nikkei index closed lower on Monday as traders stayed cautious ahead of a key Federal Reserve decision.
The benchmark Nikkei 225 index dipped 0.16 percent, or 44.04 points, to end at 27,655.21 while the broader Topix index was flat, inching down 0.04 points to 1,943.17.
“The FOMC results and Fed Chair Powell’s press conference are scheduled for tomorrow. The market is weighed down by a cautious mood,” Okasan Online Securities said in a note.
The Fed is widely tipped to hike borrowing costs by 0.75 percentage points Wednesday as it battles soaring inflation.
“It will be hard for investors to aggressively buy stocks until they become confident that the Fed might pivot to a slower pace of tightening,” OANDA senior market analyst Edward Moya said in a commentary.
“Right now investors are confident the Fed could tighten at each meeting for the rest of the year, but what they want to see is that they could be open to only a half-point increase in September.”
The dollar stood at 136.67 yen in Asian trade, against 136.65 yen in New York Monday.
In Tokyo trading, shipping companies were down, with Kawasaki Kisen tumbling 3.25 percent to 9,520 yen and Nippon Yusen dropping 1.93 percent to 10,120 yen.
Uniqlo operator Fast Retailing edged down 0.08 percent to 79,710 yen but SoftBank Group jumped 3.19 percent to 5,681 yen.
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