Japanese shares down ahead of US Fed meeting

TOKYO: Japanese shares fell slightly on Tuesday as cautious investors held back ahead of an interest rate decision by the Federal Reserve later in the day.

The benchmark Nikkei 225 Stock Average slipped 18.52 points, or 0.14 percent, to 12,914.66 in its third straight losing session. The broader Topix index dropped 0.04 percent to 1,247.15.

While lower crude oil prices and a relatively stable dollar-yen exchange rate helped boost sentiment, Japanese markets stood largely idle as investors awaited Wall Street's next move, said Kenichi Hirano, operating officer at Tachibana Securities in Tokyo.

``U.S. stocks are at a crucial point right now,'' Hirano said. ``Whether they will rebound or fall further will be influenced in part by tonight's (Fed) meeting.''

Also souring the mood in Japan were reports that the government would downgrade their assessment of the country's economy in its August economic report due out Thursday.

Leading decliners were insurance and steel issues. Japan's second-largest steelmaker JFE Holdings, Inc. plunged 7.19 percent to 4,390 yen; Nippon Steel Corp. lost 4.88 percent to 526 yen. Major nonlife insurer Mitsui Sumitomo Insurance Group Holdings, Inc. shed 5.90 percent to 3,190 yen.

The consumer finance sector, however, gained on news of a possible merger between Orix Corp. and Credit Saison Co. Major credit issuer Credit Saison surged 11.22 percent to 2,330 yen, and leasing company Orix added 2.59 percent to 15,070 yen.
Pulp and paper companies and rubber products makers benefited from falling oil prices.

Oil prices fell below US$120 a barrel in electronic trading Tuesday in Asia on expectations the economic downturn in the U.S. will erode consumer demand for crude products.

In currencies, the dollar fell to 107.78 yen Tuesday afternoon from 108.22 yen late Monday. The euro was trading at US$1.5505 compared with US$1.5567
thanks to :- economictimes.indiatimes.com