Thursday, 19 May 2016 13:50 WIB |
MARKET UPDATE |Nikkei 225Saham JepangIndeks acuan Nikkei 225Topix JepangIndeks Topix Japan
Japan’s Topix index closed lower as investors weighed minutes from the Federal Reserve’s latest meeting, in which policy makers signaled a willingness to raise U.S. interest rates in June. Declines in commodity-related and energy shares offset gains at financial companies.
The Topix slipped 0.1 percent to 1,336.56 at the close in Tokyo after swinging between gains of 1.1 percent gain and losses of 0.5 percent. The Nikkei 225 Stock Average closed little changed at 16,646.66. The yen traded at 110.23 per dollar after falling 1 percent on Wednesday. Minutes from the Fed’s April meeting showed most officials said a rate increase would be appropriate in June if the economy continued to improve.
Futures markets show traders are now pricing in a 32 percent chance of a hike next month, up from 12 percent prior to the release. While strong data on inflation and retail sales since the Fed’s last meeting bolstered the outlook for a rate increase, the Citi Economic Surprise Index, which measures the strength of data relative to analysts expectations, has shown little improvement in May.
Insurers led gains in Tokyo on the outlook for higher investment returns from an increase in interest rates, sending Dai-ichi Life Insurance Co. 2.8 percent higher. The group also got a boost from a Nikkei article that said non-life insurance companies may see record profits in the current fiscal year.