Roundup: Tokyo stocks end flat ahead of U.S., Japan central banks' meetings

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TOKYO, Sept. 16 (Xinhua) -- Tokyo stocks ended essentially flat Wednesday as investors awaited the outcomes of central banks' policy setting meetings in the U.S. and Japan, while eyeing the new Cabinet picks under Japan's newly elected prime minister.

The 225-issue Nikkei Stock Average edged up 20.64 points, or 0.09 percent, from Tuesday to close the day at 23,475.53.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 3.51 points, or 0.21 percent, to finish at 1,644.35.

The market was dominated by a wait-and-see mood ahead of the outcome of the U.S. Federal Reserve's policy setting meeting, at which it is expected to continue to maintain its low interest rates, local brokers said.

In addition, the Bank of Japan's own two-day policy setting meeting began Wednesday, with investors also on the sidelines despite the likelihood the bank will stay pat on its ultra-loose monetary policy and look to seamlessly work with the administration of Yoshihide Suga who was elected prime minister earlier in the day, they added.

Despite some jitters, market analysts said that the launch of the LDP's executive lineup and formalization of his Cabinet had largely been factored in, with many of the previous Cabinet's heavyweights being retained in Suga's lineup announced Wednesday.

Most notably for markets, Finance Minister Taro Aso retained his portfolio, suggesting little change to the administration's economic policy in the wake of former Prime Minister Shinzo Abe's departure, strategists highlighted.

"Although a wait-and-see mood prevailed, the market was well supported by expectations for the Suga administration, which triggered buying of a broad range of issues sensitive to domestic demand," Toshikazu Horiuchi, equity strategist at IwaiCosmo Securities Co., was quoted as saying.

By the close of play, information and communication, and food issues comprised notable gainers, while marine transportation and rubber product issues comprised those that declined the most.

Issues sensitive to domestic demand gained traction, with Daiichi Sankyo Co. Ltd. a notable winner, climbing 2.6 percent by the close.

SoftBank Group Corp. continued to find favor jumping 4.6 percent, after announcing it will sell its entire stake in British chip designer Arm Ltd. to U.S. semiconductor maker Nvidia Corp. in a move that could net the conglomerate up to 40 billion U.S. dollars to help offset investment losses, brokers here highlighted.

But exporters lost ground owing to a comparatively firm yen versus the U.S. dollar, with Bridgestone falling 2.1 percent, while Honda Motor skidded down 2.6 percent.

Issues that rose outpaced those that fell by 1,357 to 732 on the First Section, while 85 ended the day unchanged.

On the main section on Wednesday, 1.168 billion shares changed hands, dropping from Tuesday's volume of 1.171 billion shares.

The turnover on the third trading day of the week came to 2.139 trillion yen (20.349 billion U.S. dollars). Enditem

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