* Investors want no 'news' from BOJ - analyst
* Real estate stocks rise
By Ayai Tomisawa
TOKYO, Sept 21 (Reuters) - Japan's Nikkei share index fell on Wednesday morning, dragged down by selling in banking and insurance stocks as investors braced for the outcome of the Bank Of Japan's policy meeting.
By 0150 GMT the Nikkei had dropped 0.5 percent to 16,405.47.
The BOJ is expected to make negative interest rates the centrepiece of a new policy framework.
Banks and insurers were sold, with Mitsubishi UFJ Financial Group falling 1.2 percent, Mizuho Financial Group shedding 0.7 percent and Dai-ichi Life Insurance Co dropping 2.1 percent.
"At past policy meetings, investors had expectations that there would be some easing. But this time, they think no news is good news," said Kazuhiro Takahashi, equity strategist at Daiwa Securities. "The market is extremely cautious while it focuses on whether the BOJ will lower rates further into negative territory, and people don't want any news related to that."
On the other hand, real estate stocks outperformed. Mitsui Fudosan Co gained 1.4 percent and Sumitomo Realty & Development Co rose 1.0 percent.
Exporters were mixed, with Toyota Motor Corp falling 0.4 percent, Honda Motor Co rising 0.6 percent and Panasonic Corp dropping 0.3 percent.
The broader Topix shed 0.5 percent to 1,310.75 and the JPX-Nikkei Index 400 declined 0.5 percent to 11,757.04. (Reporting by Ayai Tomisawa; Editing by Eric Meijer)