Nikkei edges down as investors await BOJ policy decision
By Joshua Hunt
Oct 7 (Reuters) - Japanese stocks fell in light trade on Wednesday as investors waited to see whether a Bank of Japan policy meeting would result in further stimulus.
The Nikkei share average edged down 0.2 percent to end the morning session at 18,155.58points.
The BOJ is widely expected to keep its massive stimulus programme unchanged in a decision expected by midday, but investors will be closely listening to comments from Governor Haruhiko Kuroda at an afternoon news conference (0630 GMT) for possible clues on future policy direction.
Some are betting on easing at a meeting late in the month, while others do not expect more stimulus until next year. A recent spate of weak data has fanned fears that the economy may have slipped back into recession in the summer.
"Most people have made their bets on what they think the BOJ will do so they're spending the morning waiting to see what happens," said Nicholas Smith, a strategist at CLSA.
"Anyone who needs to make adjustments will do so after lunch."
Japan's air transport sector slipped on an overnight rise in crude prices that put downward pressure on airlines' shares, causing the sector to shed 3.3 percent in morning trade.
ANA Holdings fell 3.3 percent and Japan Airlines lost 3.4 percent. Continuación...