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Japanese stocks wobble on uncertainty over Fed, earnings

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TOKYO, June 24 Reuters Japanese shares were flat on Thursday, as traders eyed the latest statements from U.S. Federal Reserve officials, while uncertainty over domestic corporate earnings kept investors on the sidelines.

As of 0015 GMT, Nikkei share average was flat at 28,863.88, while the broader Topix slipped 0.14 to 1,946.45.

Although the market has been recovering from last weeks losses, triggered by a hawkish shift in the U.S. Feds policy guidance, it is starting to lose traction, analysts said.

U.S. inflation could stay at high levels, so we will need more data on inflation, wages and employment. And, quarterly earnings will be a few weeks away, the market is running out of trading factors, Nobuhiko Kuramochi, senior strategist at Mizuho Securities said.

Two Fed officials said a period of high inflation in the United States could last longer than anticipated, a day after Fed Chair Jerome Powell played down rising price pressures.

Many hospitalityrelated shares, which led indexs gains before the Fed meeting outcome, have now succumbed to profittaking.

West Japan Railway fell 1.9 while department store operators Isetan Mitsukoshi and Takashimaya lost 1.9 each.

Sumitomo Forestry fell 2.3 after the company announced a plan to sell new 16 million shares, which amount to 8.7 of its existing shares to raise up to 37.1 billion yen 334.32 million.

Toshiba erased early losses to trade 0.4 higher after weekly financial magazine Diamond reported Kioxia Holdings Corp,…

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