Nikkei set to fall ahead of Fed outcome, key earnings
TOKYO, July 31 (Reuters) - Japan's Nikkei share average is set to drop on Wednesday, with investors cautious ahead of key domestic earnings and as they await the outcome of a Federal Reserve meeting for clues on the outlook for U.S. economic stimulus. Market participants said the Nikkei would likely trade between 13,650 and 13,900, after rebounding 1.5 percent to 13,869.82 on Tuesday. Nikkei futures in Chicago finished at 13,720, down 1.2 percent from the close in Osaka at 13,890. "Traders globally seem to be in wait-and-see mode before the outcome of the Fed meeting on the timing of quantitative easing tapering," said Mitsushige Akino, chief fund manager at Ichiyoshi Assset Management, adding that Japanese corporate earnings would also be in focus. Companies including Honda Motor Co, Fuji Heavy Industries Ltd, Panasonic Corp, Toshiba Corp and Nintendo Co are set to report first-quarter results on Wednesday. Later in the day, attention will shift to the Fed policy statement, with investors hoping for further hints on when the U.S. central bank will begin scaling back the massive bond-buying programme that has bolstered global financial markets. The yen was trading at 98.10 yen to the dollar, still close to a one-month high of 97.64 hit on Monday. A stronger yen tends to make export-reliant Japan's products less competitive in the global market.
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