TOKYO, March 19 (Reuters) - Japan's Nikkei share average
slid on Tuesday ahead of a pivotal Bank of Japan policy
decision, with investors braced for an end to eight years of
radical monetary stimulus.
Many semiconductor-related shares had outsized losses, after
Nvidia's ( NVDA ) annual developer conference failed to provide
fresh momentum for the global artificial intelligence-centred
chip stock rally.
Energy shares were the top performers, after a 2% jump in
crude oil prices overnight.
The Nikkei slipped 0.8% to 39,429,73, as of 0130
GMT, giving up some of Monday's 2.7% surge, when investors
cheered media reports offering further insight on what BOJ
policymakers would do on Tuesday.
The broader Topix eased 0.2%, with a sub-index of
growth shares down 0.5%, while value stocks
were flat.
"With every media outlet basically reporting an end to
negative rates, yield curve control and ETF buying - what you
could call the full set of three - the market has already
completely priced in this outcome," said Kazuo Kamitani, an
equities strategist at Nomura Securities.
He said the updated dot plot when the U.S. Federal Reserve's
own policy meeting ends on Wednesday would be a near-term "focal
point." Japanese markets are closed for a national holiday that
day.
There is no set time for the BOJ's policy announcement, but
it has recently come around the time stock markets reopen from
the midday recess at 0330 GMT.
Top BOJ officials, including Governor Kazuo Ueda, have
stressed that bond purchases would continue even if yield curve
control is ended, and that the central bank will not engage in
successive hikes after exiting negative rates.
Chip-testing equipment maker Advantest ( ADTTF ), which
counts Nvidia ( NVDA ) among its customers, was among the Nikkei's worst
performers on Tuesday, slumping 2.5%.
AI-focused startup investor SoftBank Group ( SFTBF ) dropped
0.7%.
The biggest drag on the Nikkei was Uniqlo store operator
Fast Retailing ( FRCOF ) due to its particularly heavy weighting
in the index. Shares of Fast Retailing ( FRCOF ) slid 1.8%.
Inpex ( IPXHF ) was the Nikkei's top performing energy stock,
gaining 2.3%. Among top sectors, miners - which
includes oil explorers - gained 2.2%, while oil and coal
producers rose 1.2%.
(Reporting by Kevin Buckland; Editing by Subhranshu Sahu)