TOKYO: Japanese stocks fell, with banks and exporters dragging the Topix index lower, as investors await an update from the Federal Reserve on U.S. monetary policy and a meeting of euro-area finance ministers with Greece.
Sumitomo Mitsui Financial Group Inc. slumped 3.1 percent to provide the biggest drag to the Topix. Mitsui Mining & Smelting Co. lost 1.4 percent after Mizuho Financial Group Inc. cut its rating on the stock. Game-maker Square Enix Holdings Co. jumped 4.2 percent after previewing its Final Fantasy title at a conference in Los Angeles.
The Topix lost 0.6 percent to 1,642.70 as of 1:28 p.m. in Tokyo, with about two shares dropping for each that rose. Volume was about 17 percent below the 30-day intraday average. The Nikkei 225 Stock Average slipped 0.6 percent to 20,272.62.
“The mood to step back and see what happens with the Fed meetings and the Greece negotiations won’t be any different today,” Toshihiko Matsuno, chief strategist at SMBC Friend Securities Co. in Tokyo, said by phone. “As the time limit nears for Greece, negotiations aren’t reaching a conclusion. Investors can’t go long on Japanese stocks with abandon.”
The Federal Reserve begins a two-day meeting Tuesday, at which officials are expected to leave interest rates unchanged. Improving economic reports since the central bank’s last session have pushed the probability for a September increase to 53 percent, data compiled by Bloomberg show. Japan policy makers are also reviewing borrowing costs this week.
