Japan shares tumble on earnings
On Wednesday, Japanese stocks dropped amid gloomy corporate earnings ahead of long-awaited monetary decisions by Japanese and US major banks, while elsewhere in the region energy stocks surged amid growing oil.
The Nikkei Stock Average edged down 0,5% as market participants didn’t want to put on big trades. Amidst individual shares, Shimano, bicycle parts maker went down 4.4% right after the company dared to decrease its net-revenue projection for this year, citing a weaker greenback against its Japanese rival.
Canon, electronics maker lost 5.8% after the company lowered its sales as well as revenue projections for this year. Canon was affected by China’s slower economic growth and a higher yen.
This week revenues in stock markets throughout the world have been capped, as investors are waiting for a monetary policy update from the Fed’s Federal Open Market Committee a bit later today. The US central bank isn’t expected to increase its interest rates, though some rumors tell it might happen in June. As for the BOJ, it’s going to announce its monetary decision on Thursday.