NIKKEI Stock Average moved back by (negative 0.62 percent) or 0.4 percent lower. On the other hand, the TOPIX index absorbed a loss of 0.3 percent. However, the scope of retreat was limited to some extent after US stocks also rallied overnight.
USD and JPY pair scaled down more than one yen to ¥119.73 after the US Fed seemed to be taking time in bringing up cash rates. Meanwhile, US Fed officials reduced median projections for the rate of federal funds at the end of this year to approximately 0.625 percent compared with estimates of 1.125 last December. Median forecasts for 2016 decreased from 2.5 to 1.875 percent, based on the quarterly review of economic projections made by the Federal Open Market Committee.
The FOMC downplayed its evaluation claiming that growth tones down a bit after January.
Japanese analysts say that it will be hard to see any rate hike this June and the schedule will probably be postponed. The comparative strength index was pegged at 79 in Tokyo above the 70 cap that traders watch as indication that stocks have gone up rapidly and too far.
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