UPDATE: Nikkei ends flat, supported by US easing expectations

CLOSING REPORT

The Nikkei stock average closed nearly flat on Wednesday, supported by expectations of more monetary easing by the Federal Reserve but under pressure as investors took profits after four days of gains, with concerns lingering about the US economy.

The benchmark Nikkei finished up 0.01% at 8,955.20. The broader Topix index gained 0.4% to 770.60.

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Tokyo stocks fell 0.40% today as a plunge in US consumer confidence weighed on Japanese exporters, brokers said.

The benchmark Nikkei 225 index lost 35.40 points to 8,918.50 by the lunch break, despite an overnight gain in US stocks on hopes that the Federal Reserve would act to boost the ailing economy.

The Topix index of all first-section issues of the Tokyo Stock Exchange slipped 0.52 points or 0.07% to 766.78.

Exporters such as factory-automation systems maker Fanuc and electronics maker TDK took a hit due to the weak US consumer confidence survey, said Naoki Fujiwara, fund manager at Shinkin Asset Management.

Fanuc fell 0.63% to 12,520 yen and TDK tumbled 2.35% to 3,315.
   
A key US survey showed on Tuesday that consumer confidence plunged in August to the lowest level in more than two years as consumers worried about the economy amid a political standoff over the nation's debt.
   
Japanese industrial production data for July, showing a weaker-than-expected 0.6% rise from June, had a muted effect on stocks as "it is still in the positive," Fujiwara told Dow Jones Newswires.
   
The Dow Jones Industrial Average rose 0.18% to end at 11,559.95 on Tuesday as the minutes of a Fed August 9 policy meeting showed most members concerned about economic weakness and readily weighing possible stimulus moves.
   
But "the Fed minutes cannot be a sustainable buying incentive for US stocks," said Yutaka Miura, senior technical analyst at Mizuho Securities.
   
"Investors will likely remain cautions ahead of upcoming macroeconomic indicators, which are expected to be poor," he said.
   
Market players have been waiting for manufacturing data on Thursday and jobs data on Friday.