Tokyo stocks open lower

19 September, 2019 12:00 AM printer

TOKYO: Tokyo stocks opened lower in cautious trade on Wednesday as investors watched for the US Federal Reserve’s decision later in the day.

The benchmark Nikkei 225 index was down 0.05 percent or 10.19 points at 21,991.13 in early trade, while the broader Topix index was down 0.32 percent or 5.19 points at 1,612.96.

“After US shares ended slightly higher in a session dominated by a wait- and-see attitude, the Japanese market is seen moving in a narrow range” ahead of the US Fed’s policy decision, said Toshiyuki Kanayama, senior market analyst at Monex.

The dollar fetched 108.13 yen in Asian trade, unchanged from the level in New York late Tuesday, reports AFP.

Observers largely anticipate a rate cut from the Fed, but “the big question for market participants is whether the Fed will commit to more cuts,” said Edward Moya, market analyst at Oanda.

The New York Fed on Tuesday pumped billions of dollars into financial markets as a sudden cash shortage drove up interest rates on the eve of the Fed policy decision, which economists widely expect will result in a lower target rate.

“The Federal Reserve Bank of New York was forced to take action on Tuesday,” Moya noted, adding that this means the US central bank may have to do more than cutting rates.