Japan Shares May Take Further Damage On Wednesday

(RTTNews) - The Japanese stock market has moved lower in three straight sessions, slumping more than 1,150 points or 2.8 percent in that span. The Nikkei 225 now sits just beneath the 41,000-point plateau and it may extend its losses on Wednesday.

The global forecast for the Asian markets is flat to lower ahead of the FOMC rate decision scheduled for later today. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The Nikkei finished modestly lower on Tuesday following losses from the financial shares, technology stocks and automobile producers.

For the day, the index stumbled 323.72 points or 0.79 percent to finish at 40,674.55 after trading between 40,563.53 and 40,792.85.

Among the actives, Nissan Motor tanked 3.09 percent, while Mazda Motor surrendered 3.46 percent, Toyota Motor tumbled 2.26 percent, Honda Motor retreated 2.11 percent, Softbank Group declined 1.41 percent, Mitsubishi UFJ Financial contracted 1.61 percent, Mizuho Financial skidded 1.09 percent, Sumitomo Mitsui Financial stumbled 1.78 percent, Mitsubishi Electric dropped 0.97 percent, Sony Group sank 0.91 percent, Panasonic Holdings dipped 0.13 percent and Hitachi slumped 1.55 percent.

The lead from Wall Street is soft as the major averages opened mixed on Tuesday but quickly turned lower, ending near session lows.

The Dow slumped 204.57 points or 0.46 percent to finish at 44,632.99, while the NASDAQ shed 80.29 points or 0.38 percent to close at 21,098.29 and the S&P 500 sank 18.91 points or 0.30 percent to end at 6,370.86.

The pullback on Wall Street may reflected profit taking following the upward trend seen over the past several sessions, which saw the NASDAQ and the S&P 500 reach new record highs.

Traders also seemed reluctant to make significant moves ahead of the Federal Reserve's monetary policy announcement later today. While the Fed is expected to leave interest rates unchanged, the announcement could impact the outlook for rates.

In economic news, the Conference Board released a report showing consumer confidence in the U.S. saw a modest improvement in July. Also, the Labor Department said job openings in the U.S. decreased by slightly less than expected in June.

Crude oil prices moved higher on Tuesday as the U.S. deadline for Russia to finalize an agreement with Ukraine or face sanctions draws nearer. West Texas Intermediate crude for September delivery was up $2.81 or 4.21 percent to $69.52 per barrel.