Japan Shares Fall Before The Fed

Japan’s Nikkei index ended lower on Wednesday, with technology heavyweights tracking the losses of their US counterparts on Tuesday night on fears of the Federal Reserve’s increasing hawkish tone and tensions surrounding Ukraine.

The Nikkei fell 0.44 percent to close at 27,011.33 points, after touching earlier in the session a 13-month low.

The broader Topix index fell 0.25 percent to 1891.85 points.

US stocks fluctuated between heavy losses and modest gains before ending trading away from the lowest levels during the session, affected by the shares of technology companies sensitive to the interest rate.

The Federal Reserve is due to issue an update to its monetary policy that will reveal the timing of expected interest rate increases and shrink its massive balance sheet.

Technology heavyweights fell, with Tokyo Electron Semiconductor and Electronics losing 0.81 percent, robotics producer Fanuc tumbling 3.29 percent, and phone operator KDDI down 2.57 percent.

Toyota shares fell 0.67 percent, giving up early gains fueled by the automaker’s plans to produce a record 11 million vehicles in the 2022 fiscal year.

Rival Suzuki Motor jumped 5.77 percent and was the biggest gainer on the Nikkei index after its Indian arm, Maruti Suzuki, improved its margins for the third quarter by raising prices.

Game maker Nintendo shares rose 4.36 percent after Nomura Securities recommended buying its shares.