Tokyo Stocks Fall As JPY Stalls At Current Low

Stocks gave up earlier gains to end slightly lower on the Tokyo Stock Exchange on Wednesday, pressured by receding expectations for a weaker yen against the dollar.

The 225-issue Nikkei average ended down 22.86 points, or 0.14 percent, at 15,888.67. On Tuesday, the key market gauge lost 36.76 points.

The TOPIX index of all First-Section issues slipped 5.90 points, or 0.45 percent, to close at 1,304.96, after losing 2.86 points the previous day.

Buying took the upper hand at the outset of Wednesday’s trading, following Wall Street’s advance overnight. The Dow Jones industrial average hit an all-time intraday high on Tuesday on speculation that the U.S. Federal Reserve will not raise interest rates at an early date, brokers said.

After the initial buying ran its course, the market’s upside was quickly capped as players retreated to the sidelines to see the outcome of the Fed’s two-day policy-setting Federal Open Market Committee meeting ending later on Wednesday as well as what Fed Chair Janet Yellen says at a press conference after the meeting, brokers said.

Tuesday’s rise in U.S. equities came after a U.S. economic journalist said the Fed would not revise its pledge to keep its zero interest policy “for a considerable time” after the end of its quantitative easing program.

Falling issues outnumbered rising ones 1,199 to 491 in the TSE’s First Section, while 138 issues were unchanged.

via Japan News

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza