TOKYO: Tokyo stocks headed lower on profit-taking Wednesday morning ahead of a US Federal Reserve policy meeting that dealers hope will shed light on its plans for hiking interest rates.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange was down 0.33 percent, or 67.16 points, at 20,190.78 by the break, while the Topix index of all first-section shares slipped 0.24 percent, or 3.99 points, to 1,635.87.
Markets are awaiting clearer guidance about the US central bank s timing for an interest rate rise following a broadly upbeat string of data on the world s top economy in recent weeks.
Friday sees the Bank of Japan conclude its own meeting, which will be watched to see if and when it will expand its stimulus programme.
Investors were also keeping watch on Greece as concerns about Athens troubled debt reform talks with creditors, with fears growing that it will default and tumble out of the eurozone.
Greek Prime Minister Alexis Tsipras on Tuesday accused international creditors of trying to “humiliate” his country and called on Europe to reconsider its support for tough International Monetary Fund reform proposals.
“I expect there to be a sense of relief if (Fed chair Janet) Yellen says that they won t hurry into rate hikes, or says something supportive toward a recovery in the US economy,” Hiroichi Nishi, a manager at SMBC Nikko Securities, told Bloomberg News.
“The market continues to be wary of Greece s possible default.”
Shortly before markets opened, data showed Japan posted a $1.75 billion trade deficit in May, sharply narrower than a year earlier owing to a drop in energy imports, but still not enough to offset lacklustre exports.
In Tokyo share trading, banks led the market down with Japan s biggest lender Mitsubishi UFJ falling 0.81 percent to 868.4 yen and rival Sumitomo Mitsui Financial Group dropping 1.82 percent to 5,245 yen.
