Japan Market falls on US-China trade worries, Fed rate decision in focus

Headline shares of the Japan share market closed lower on Wednesday, 31 July 2019, as risk sentiments were downbeat on following a weak lead from Wall Street overnight, worries over trade negotiations after US President Donald Trump's negative tweets on China, and on caution ahead of the Federal Reserve's interest rate decisions due later in the day. Total 28 subsectors out of 33 subsectors of the Topix's index declined, with Marine Transportation, Warehousing & Harbor Transportation Services, Transportation Equipment, Fishery, Agriculture & Forestry, Rubber Products Rubber Products, and Foods issues being notable losers, while Pharmaceutical, Pharmaceutical, and Electric Power & Gas issues were notable gainers. At closing bell, the 225-issue Nikkei Stock Average dropped 177.89 points, or 0.82%, to 21,531.42, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 8.66 points, or 0.55%, at 1,566.92.

U.S. President Donald Trump said in a series of tweets Tuesday that China is not keeping its promise of buying more U.S. agricultural products. For its part, China insists that it has bought U.S. agricultural products. Trump's comments come as U.S.-China trade talks are happening in Shanghai from July 30 and 31, as the two economic powerhouses aim to reach a deal to end a protracted trade war.

Meanwhile, investors await the U.S. Federal Reserve's announcement of its decision on interest rates. The Fed is set to deliver its decision on interest rates later Wednesday, with expectations that it will cut interest rates by a quarter point.

CURRENCY NEWS: The Japanese yen strengthened against the US dollar on Wednesday. The Japanese yen, often seen as a safe-haven currency, traded at 108.57 against the dollar after strengthening from levels above 108.8 in the previous session.

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