Japan Stocks Mixed as Banks Rise and Tech Shares Retreat
Japanese stocks traded mixed on Wednesday, with banks supporting the broader market while some technology shares declined. Investors awaited the Federal Reserve’s policy decision, while lower oil prices linked to optimism over a US-Iran peace deal helped keep market sentiment stable.
The Topix Index rose 0.1% to 3,995.22 as of 9:23 a.m. Tokyo time, while the Nikkei slipped 0.2% to 69,265.13. Of the 1,639 stocks in the Topix, 1,105 advanced, 465 declined, and 69 were unchanged.
Mizuho Financial Group was the biggest contributor to the Topix gain, rising 2.5%. The advance in bank shares helped offset weakness in parts of the technology sector, which remains sensitive to global rate expectations and valuation adjustments.
Kazunori Tatebe, chief strategist at Daiwa Asset Management, said sectors that had faced strong pressure from the Middle East situation are expected to perform relatively well after the decline in crude oil prices. Lower oil prices help ease inflation concerns and create room for renewed interest in cyclical sectors.
Tatebe also said the Bank of Japan’s policy announcement and press conference passed without causing disruption for the stock market. The rise in interest rates remained within recent ranges, while the yen stayed relatively stable, limiting the impact on Japanese equities.
Attention now turns to the Fed. Markets see a low chance that the Fed will strongly signal a rate hike, reducing the risk of a sharp negative reaction in equities. Still, the tone of the policy statement remains important because it could influence global yields, the yen, and technology stocks.
AI-related sentiment is expected to remain a key market driver after the FOMC meeting. At the same time, the improving Middle East outlook and lower oil prices may broaden buying interest into cyclical shares. Investors will continue to watch Fed signals, yen movements, oil prices, and sector rotation across Japanese equities.
Source : Newsmaker.id
