Japan Nikkei extends losses ahead of Fed rate decision

Japan share market finished lower for fourth straight session on Wednesday, 15 June 2022, as risk sentiments remain downbeat on caution ahead of the U.S. Federal Reserve's announcement of the outcome of its policy-setting meeting later in global day.

However, market losses were capped by better than expected core machinery orders data and the Bank of Japan ramping up its bond-buying program.

At closing bell, the 225-issue Nikkei Stock Average was down by 303.70 points, or 1.14%, to 26,326.16. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 22.52 points, or 1.2%, to 1,855.93.

Total 29 of 33 TOPIX sectors ended the session lower, with Oil & Coal Products (down 3.7%), Mining (down 3.65%), Electric Power & Gas (down 2.15%), Machinery (down 2.1%), and Precision Instruments (down 2.1%) issues suffered the largest percentage losses.

ECONOMIC NEWS: Core machinery orders, a highly volatile data series considered an early indicator of capital expenditure, grew 10.8% in April from the previous month, the Cabinet Office data showed on Wednesday. Compared with a year earlier, core orders, which exclude volatile numbers from shipping and electric power utilities, gained 19.0% in April, the data showed.

CURRENCY NEWS: The dollar cut early gains to move around upper 134 yen range in Tokyo trading on Wednesday. At 5 p.m., the dollar stood at 134.71-71 yen, up from 134.42-42 yen at the same time Tuesday.

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