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Oct 7 (Reuters) - Japanese stocks extended losses on Wednesday as some investors seemed to have been disappointed with the Bank of Japan's decision to keep its policy steady.
The Nikkei share average dropped as much as 0.8 percent to 18,043.08 points, compared to 18,155.58 at the midday close.
As widely expected, the BOJ kept monetary policy steady, preferring to save its limited options while hoping that a tight job market will lift wages and consumption enough to offset the pain from China's slowdown.
Traders said that some players had bet on easing at Wednesday's meeting.
"A very limited number of investors seems to have thought the central bank might announce easing today," said Hikaru Sato, a senior technical analyst at Daiwa Securities.
He said that the fact that it stood pat on policy this time is now translating into higher expectations of easing at its next meeting on Oct. 30.
"There is a possibility that the market will fall if the BOJ doesn't ease later this month," he said.
The broader Topix was flat at 1,476.40 and the JPX-Nikkei Index 400 shed 0.1 percent to 13,211.93.
Editing by Kim Coghill