December 18, 2024 at 01:56 am EST
(MT Newswires) -- Japan shares edged lower on Wednesday, tracking US losses, as investors adjusted portfolios ahead of the Federal Reserve's rate decision and 2024 outlook.
The Nikkei 225 dropped 0.72%, or 282.97 points, to end at 39,081.71.
The Fed is widely expected to cut interest rates by 25 basis points, but the focus has shifted to its economic projections and Chair Jerome Powell's comments on the outlook for 2024.
Markets are weighing growth-stimulating policies from the incoming Trump administration against persistent inflation. Mixed U.S. data, including strong retail sales and weaker-than-expected industrial production, has added to the cautious sentiment.
In economic updates, Japan's trade deficit narrowed sharply to 117.6 billion yen in November from 813.9 billion yen a year earlier, supported by modest export growth and a weaker yen, according to Ministry of Finance data.
Exports rose 3.8% to 9.15 trillion yen, with gains led by food, raw materials, machinery, and chemicals, even as transport equipment exports declined. Imports fell 3.8% to 9.27 trillion yen.
On the corporate front, Honda (TYO:3191) and Nissan (TYO:7201) are in early discussions about a potential merger to better compete with Toyota globally, Bloomberg reported, citing sources.
The talks include the possibility of forming a holding company, and Mitsubishi Motors could join due to its ties with Nissan, though discussions are still in the early stages.
In separate news, Change Holdings (TYO:3962) is acquiring Fundbook for 15.6 billion yen as part of efforts to bolster mergers and acquisitions and support regional revitalization using AI and other technologies.
Meanwhile, LY (TYO:4689) plans to absorb its subsidiary Z Financial in a merger aimed at streamlining resources across its advertising, e-commerce, and member services businesses
Sumber : MT Newswires
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