Japan Nikkei falls on stronger yen, ahead of Fed's rate decision

Headline indices of the Japan share market were lower on Tuesday, 19 March 2019, as investors opted to lock in gains following the Nikkei's recent advances over the past two days and stronger yen against greenback. Investors were also cautious before the U.S. Federal Reserve and other major central banks meetings outcome later in the week. Total 19 subsectors of the 33 subsectors of the Tokyo Stock Exchange declined, with shares in Retail Trade, Electric Power & Gas, Precision Instruments, Land Transportation, and Textiles & Apparels issues being notable losers, whereas Insurance, Pulp & Paper, Machinery, and Banks issues were notable gainers. Around late afternoon, the 225-issue Nikkei Stock Average dropped 43.34 points, or 0.2%, at 21,541.16. The broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 3.86 points, or 0.24%, at 1,609.82.

The U.S. Federal Reserve will meet to discuss interest-rate policy this week, with an announcement scheduled for Wednesday, and speculation it may hold interest rates steady, announce plans for the end of asset roll-off from its balance sheet, and lower projections for the number of interest-rate hikes this year. Central banks in Thailand, the Philippines and Indonesia are all scheduled for policy meetings.

 

In the euro zone, purchasing manager survey numbers on Friday will give an indication of the health of the region's industrial and service sectors at the end of the first quarter.

CURRENCY NEWS: The yen changed in the lower-111 zone against greenback, partly ahead of a two-day US Federal Reserve meeting. The US Federal Reserve Open Market Committee is scheduled to meet on Tuesday and Wednesday, with market participants focusing on the Fed's policy statement at the end of the meeting. Investors have broadly expected that the Fed would remain its current benchmark overnight interest rate range. The dollar was quoted at 111.38-40 yen compared with 111.38-48 yen in New York and 111.48-49 yen on Monday in Tokyo. The euro, meanwhile, fetched 126.27-28 yen against 126.32-42 yen in New York and 126.51-55 yen in late Monday afternoon trade in Tokyo.

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