TOKYO: Tokyo shares fell Wednesday morning as investors awaited the outcome of a Bank of Japan policy meeting, with weak trade data aggravating concerns about the world’s number three economy.
Japan’s central bank, which wraps up its two-day gathering later in the day, is set to issue an unprecedented report card on its own monetary policy, which has largely failed to spark a recovery.
Some are expecting the bank to launch more stimulus measures to prop up lacklustre growth.
The meeting comes as the US Federal Reserve also finishes a meeting later in the day, but few expect the central bank to move on interest rates until December at the earliest.
Tokyo’s benchmark Nikkei 225 index slipped 0.49 percent, or 80.18 points, to 16,411.97 by the break, while the Topix index of all first-section issues was down 0.41 percent, or 5.39 points, at 1,311.58.
The dollar was slightly weaker at 101.59 yen against 101.72 yen in New York.
Sentiment was dented by official data that showed Japan recorded a surprise trade deficit in August as exports tumbled, adding to concerns about the state of the economy.
Bank watchers think BoJ policymakers may try to kickstart the economy by expanding an already massive 80 trillion yen annual asset-buying plan.
But there are concerns that the bank is running out of government bonds that it can buy under the programme.
Other options include cutting interest rates deeper into negative territory.
