Home NewsForex Market News Japan’s Nikkei closes at two-month low as investors await U.S. Bank of Japan meeting | Anue – Euro Asia Shares

Japan’s Nikkei closes at two-month low as investors await U.S. Bank of Japan meeting | Anue – Euro Asia Shares

by WOOWinvest
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Japan’s Nikkei closes at two-month low as investors await U.S. Bank of Japan meeting | Anue – Euro Asia Shares


Investors waited for the upcoming policy decisions of the US Federal Reserve and the Bank of Japan. Wall Street and Asian stocks generally fell. Japanese stocks fell more than 1% on Wednesday (21st) to a new low in more than two months.

The Nikkei closed 1.36% lower at 27,313.13 on Wednesday, its lowest close since July 19. The Topix fell 1.36 percent to its lowest level since Sept. 7.

Yasushi Yokoyama, an analyst at Aizawa Securities, said that if the Fed announces a 75 basis point rate hike this week, as most expected, market turmoil will still be inevitable, and investors are even looking at the next rate hike.

By contrast, the Bank of Japan is expected to be unlikely to change its dovish course, remaining the only major central bank not to raise rates this year. Although Japan’s inflation has been above the target level of 2% for five consecutive months, but the impact on decision-making is not large.

JPMorgan economist Yuka Mera released a report that so far, Japan’s price rise has clearly come from food, so although August accelerated, it will not prompt the Bank of Japan to change policy.

“As for monetary policy adjustments, the BOJ will need to see a build-up of price pressures, especially in services and wage inflation,” the report said.

Japanese government bond yields rose ahead of the central bank meeting, with the 5-year bond up 1 basis point to 0.060% after rising to 0.065% earlier, the highest since June. The central bank also implemented temporary government bond purchases on an ad hoc basis in the morning, but the response was muted.

The yen was just below 144 against the dollar, hovering near a 24-year low.

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