Nikkei drops as investors await Fed outcome; SoftBank soars
* 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.
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