Tokyo Stock Market Awaits Fed, BOJ Decisions Amid Caution

The Tokyo stock market was flat on Wednesday as investors waited for key decisions from the Federal Reserve and the Bank of Japan. The Nikkei 225 index edged down by 0.03% to 63,462.01 in early trading, marking its fourth consecutive decline.

The broader Topix index, however, gained 0.79% to 4,069.02 after reaching an intraday high of 4,072.31. Investors remained cautious ahead of the Fed's decision later on Wednesday and the BOJ's meeting on Friday, both of which are expected to raise interest rates.

US Treasury yields and debt concerns weighed on sentiment as Wall Street extended its selloff overnight. Japan's exports rose 19.3% year-on-year, but a sharp 28% increase in imports left a trade deficit of 1.106 trillion yen ($7.5 billion), highlighting the impact of higher energy costs.

Cautious investors may stay on the sidelines ahead of these key decisions, limiting sharp market moves, according to Monex Securities' Yoshitaka Araya.