Japan Nikkei snaps a 3-day rally on profit booking

Headline indices of the Japan share market were lower on Wednesday 21 August 2019, snapping a three days of winning streak, as investors locked in profit made recently on tracking weak lead from Wall Street overnight, yen mild appreciation against greenback, and on caution ahead of comments from Federal Reserve Chair Jerome Powell at the end of the week. All industry categories retreated into negative territory, with glass and ceramic, nonferrous metal and electric power and gas-linked issues being notable losers. Around afternoon, the 225-issue Nikkei Stock Average fell 80.30 points, or 0.4%, to 20,596.92, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange shed 11.58 points, or 0.8%, at 1,495.19.

U.S. stocks fell broadly on Wall Street on Tuesday after another slide in bond yields and a mixed batch of corporate earnings weighed on the market. The S&P 500 fell 23.14 points, or 0.8%, to 2,900.51. The Dow Jones Industrial Average slid 173.35, or 0.7%, to 25,962.44. The Nasdaq, which is heavily weighted with technology stocks, dropped 54.25, or 0.7%, to 7,948.56.

Market participants are awaiting for release of minutes from the Fed's July policy meeting later in the global day, when the central bank cut rates for the first time in more than a decade, and Federal Reserve Chairman Jerome Powell speech at a central banks meeting in Jackson Hole on Friday to signal that a fed-funds rate cut will be delivered at the central bank's next meeting Sept. 17-18.

Investors are hoping the Fed will continue to cut interest rates to shore up economic growth. The Fed lowered interest rates by a quarter-point at its last meeting, the first cut in a decade.

CURRENCY NEWS: The yen, a gauge of risk sentiment due to its perceived status as a safe haven, appreciated on Wednesday. The Japanese yen traded at 106.30 against the dollar, strengthening from 106.32 yesterday.

COMMODITY NEWS: Benchmark crude oil fell 3 cents to settle at $56.18 a barrel on Tuesday. Brent crude oil, the international standard, rose 29 cents to close at $60.03 a barrel. Gold rose $4.20 to $1,504.60 per ounce, silver rose 21 cents to $17.12 per ounce and copper fell 3 cents to $2.57 per pound.

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