Japan's Nikkei trades lower, tracking U.S. peers' declines

Japan's Nikkei share average traded lower on Thursday, tracking U.S. stock indexes lower overnight, while the market awaited the conclusion of the Bank of Japan's policy meeting later in the day.

The Nikkei was down 0.4% at 39,132.19 as of 00:17 GMT, while the broader Topix was down 0.44% at 2,691.77.

"The Nikkei tracked the overnight declines of U.S. equities, but also the Nikkei has retreated from gains in the previous session, which was too strong," said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.


Japan's Nikkei share average rose to a two-week closing high on Wednesday.

U.S. stock indexes closed lower on Wednesday as chip stocks tumbled and investors awaited a host of corporate earnings.

"The BOJ is unlikely to make any changes in its policy and that is the market consensus. So the policy meeting is not a market moving cue," said Kamada.

The Bank of Japan is expected to maintain ultra-low interest rates on Thursday and signal a cautious approach to rolling back its massive monetary stimulus, as political uncertainty and jittery markets cloud the outlook.

Uniqlo-brand owner Fast Retailing fell 1.5% to drag the Nikkei the most. Medical equipment maker Terumo lost 1.39%.