TOKYO: Japan’s Nikkei share average fell on Wednesday, as investors awaited a key inflation report from the United States that is likely to influence the Federal Reserve’s rate path, with chip-related stocks leading the declines.
The Nikkei fell 0.65% to 39,112.8 by the midday break, while the broader Topix slipped 0.24% to 2,734.84.
“The market was cautious ahead of the U.S. Consumer Price Index which will gauge the Fed’s policy for the next year,” said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory.
Japanese equities tracked declines in Wall Street’s main indexes on Tuesday before the November reading of the CPI, due on Wednesday – one of the last major reports ahead of the Fed’s Dec. 17-18 meeting.
Investors also awaited the Bank of Japan’s (BOJ) policy decision due on Dec. 19.
BOJ Governor Kazuo Ueda has signalled readiness to hike rates again in the near term if the bank becomes more convinced that inflation will stay around 2%, backed by solid consumption and wage growth.
Nikkei gains on weaker yen
Among chip-testing equipment makers Advantest fell 2.63% and Tokyo Electron lost 0.69%.
Chip-making device supplier Disco fell 2.84% to become the biggest percentage loser on the Nikkei.
Kawasaki Heavy Industries jumped 7.97% to become the top percentage gainer on the Nikkei. Peer IHI rose 4.98%.
TopCon surged 23% to a daily limit as the eyecare products maker said it is exploring going private among other measures to raise corporate value, following reports that private equity firms were placing bids to take the firm private.
Of more than 1,600 stocks trading on the Tokyo Stock Exchange’s prime market, 36% rose and 58% fell, with 4% trading flat.
Source: Brecorder
