Japan stocks end flat as investors await Fed, BOJ verdicts

By Stanley White
TOKYO, March 17 (Reuters) - Japanese stocks ended flat on
Wednesday as profit-taking in the tech sector offset gains in
healthcare, though the overall mood remained cautious in the
run-up to key meetings by the U.S. Federal Reserve and the Bank
of Japan.
The Nikkei 225 Index .N225 ended down 0.02% at 29,914.33,
but the broader Topix .TOPX edged up 0.13% to 1,984.03.
Sentiment for Japanese equities remained fairly positive due
to a healthy outlook for the global economy and progress in
COVID-19 vaccine rollouts, analysts said.
Japanese stocks, however, are likely to move in a narrow
range for the remainder of the month as investors retreat to the
sidelines with the fiscal year ending on March 31.
Investor focus has shifted to a Fed meeting expected to end
later in the day, where some U.S. policymakers may bring forward
their expectations for rate hikes due to an improving economy.
Investors also keenly await the outcome of a BOJ meeting
that is expected to end later in the week. Japan's central bank
could abandon a numerical target for exchange-traded fund (ETFs)
purchases, but analysts say the stock market is strong enough to
continue rising if that did happen. "If there is any disappointment in reaction to the BOJ, it
won't last long," said Takashi Hiroki, chief strategist at Monex
Securities.
"Japanese stocks have proven that they don't need the BOJ to
buy ETFs to rise sharply. Once we reach April a lot of new money
will enter the stock market."
The stocks that gained the most among the top 30 core Topix
names were Takeda Pharmaceutical Co Ltd 4502.T up 2.53%,
followed by Daiichi Sankyo Co Ltd 4568.T gaining 1.78%.
Tokyo Electric Power 9501.T fell 10.15% after Japan's
atomic regulator found safety breaches at the company's
Kashiwazaki Kariwa station. Honda Motor Co 7267.T fell 1.35% after the automaker said
it will halt production at a majority of U.S. and Canadian auto
plants for a week due to supply-chain problems.