Nikkei hits two weeks low

The Nikkei hit a more than two-week low on Wednesday as investors looked ahead warily to the outcome of a U. Federal Reserve meeting, seeking more clues on when policymakers will wind down stimulus and lift interest rates.

The benchmark closed down 0.67 per cent at 29,639.40, while the broader Topix slid 1.02 per cent to end at 2,043.55, also the lowest since September 6.

The Nikkei briefly changed course earlier in the day to trade higher after China Evergrande’s main unit, Hengda Real Estate Group, said it would pay some bond interest due on Thursday, allaying fears of an imminent collapse.

That still did not push the Nikkei above 30,000, after it lost that level on Tuesday, the start of a holiday-shortened week, according to Shigetoshi Kamada, general manager at the research department of Tachibana Securities.

“That is because investor focus is on the Fed meeting... how the interest rate projections will look like and whether the Fed will start tapering before the end of the year,” he said.

The outcome of the Fed’s two-day meeting is scheduled at 1800 GMT with a news conference half an hour later.

Japanese markets will be closed for another holiday on Thursday.

Trading houses led the decline in Japanese equities, dropping 2.37 per cent. Itochu was the worst performer among the Topix’s 30 core names, losing 4.08 per cent, while Mitsui & Co slid 2.86 per cent. Machinery makers also fell, with Daikin Industries shedding 2.94 per cent.