By DPA,
Tokyo : Japanese shares inched lower in Tuesday morning trading with investor sentiment hurt by the yen’s appreciation and investors being cautious ahead of the US Federal Reserve’s meeting.
The benchmark Nikkei 225 Stock Average lost 9.53 points, or 0.1 percent, to trade at 9,145.19 while the broader Topix index was down 1.84 points, or 0.23 percent, at 801.46.
The yen was hovering around the mid-80 yen range to the dollar, edging closer to its all-time high. The Japanese currency marked its all-time high of 79.75 yen to the dollar in Tokyo April 19, 1995.
A stronger yen has a negative impact on Japanese exporters, a driving force for the nation’s economy, as it makes their goods less competitive abroad and erodes overseas earnings when the revenues are repatriated.
Investors were also awaiting the outcome of the Federal Reserve’s two-day meeting, which is to start later in the day, and the US mid-term election. The US central bank is expected to start a new round of monetary measures to stimulate the economy.
On currency markets at 9 a.m. (0000 GMT), the dollar traded at 80.55-58 yen, up slightly from Monday’s 5 p.m. quoted of 80.45-48 yen.
The euro traded at $1.3910-3911, down from $1.3975-3978 Monday, and at 112.06-07 yen, down from 112.45-49 yen.