Nikkei drops as investors await Fed outcome; SoftBank soars

lunes 15 de septiembre de 2014 22:20 GYT
 

* FOMC may trigger unwinding of yen selling - analysts
    * SoftBank soars after Alibaba raised IPO price range

    By Ayai Tomisawa
    TOKYO, Sept 16 (Reuters) - Japanese stocks edged down on
Tuesday as most buyers camped out ahead of this week's outcome
of the Federal Reserve meeting, though Softbank jumped on news
of strong demand for Alibaba's initial public offering in the
United States.
    The Nikkei share average eased 0.2 percent to
15,923.30 in midmorning trade. Domestic markets were closed on
Monday due to a national holiday.
    SoftBank Corp soared 2.3 percent and contributed
hefty 24.11 points to the Nikkei after Alibaba Group Holding Ltd
IPO-BABA.N raised the price range on its initial public
offering to $66 to $68 on Monday because of hefty investor
demand. SoftBank owns more than a 30 percent stake in Alibaba.
 
    The Fed's Open Market Committee two-day policy meeting
begins later in the day, and global markets are keenly awaiting
clues on the timing of the first U.S. rate hike in more than
eight years. 
    With the Japanese market scaling an eight-month high on
Friday, analysts said the market may struggle to rise further in
the near term without for fresh catalysts.
    "People are watching if the outcome of the FOMC will trigger
profit-taking because the market has priced in expectations that
the Fed is on course to raise U.S. interest rates," said Hikaru
Sato, a senior technical analyst at Daiwa Securities. "It will
depend on what Yellen says but her comments could trigger
unwinding of yen selling."  
    He said the decline in the Nasdaq on Monday, the biggest
drop since July 31, also dampened the mood. 
    The dollar peaked at a six-year high of 107.39 yen on
Friday and remained within striking distance at 107.20 on
Tuesday.
    Exporters were mixed, with Toyota Motor Corp adding
0.1 percent, Honda Motor Co dropping 0.4 percent and
Panasonic Corp rising 0.5 percent.
    The broader Topix dropped 0.3 percent to 1,309.68,
and the JPX-Nikkei Index 400 slid 0.4 percent to
11,860.33.