Nikkei flat, but resource stocks climb; data eyed

* Investors cautious ahead of FOMC, U.S. GDP, earnings

* BOJ policy decision expected to have little impact-analysts

* KDDI drops after $4 bln J:Com deal announcement

By Aiko Hayashi

TOKYO, Jan 26 (BestGrowthStock) – Japan’s Nikkei average was almost
flat on Tuesday as investors grew cautious ahead of the earnings
season and economic indicators such as U.S. growth data, but
resource stocks such as Inpex Corp (1605.T: ) rose on higher
commodity prices.

KDDI (9433.T: ), Japan’s No.2 telecom firm, tumbled 7 percent
after it said it would pay $4 billion for a controlling stake in
Jupiter Telecommunications Co (4817.Q: ), the country’s biggest
cable TV firm. [ID:nTOE60O06F]

“It’s a rebound market, with eyes on currency moves. But
investors are reluctant to trade actively as they want to see the
FOMC results and the U.S. GDP figures,” said Fumiyuki Nakanishi,
a manager at SMBC Friend Securities.

“Selling by hedge funds generally appears to have run its
course due to receding fears that a recovery in the global
economy would be derailed by new bank regulations in the United
States. This is also helping commodities.”

Key events in the United States this week include the Federal
Reserve’s Federal Open Market Committee (FOMC) decision on
short-term interest rates and policy on Wednesday and U.S.
fourth-quarter growth data due on Friday. [ID:nL25265536]

The Bank of Japan will end a two-day policy review on
Tuesday, but market players expect its decision to have little
impact on the market. [ID:nTOE60K08J]

Japan’s earnings season also heats up this week, with
big-name companies including Canon Inc (7751.T: ) due to report
later in the week.

The benchmark Nikkei (.N225: ) inched up 13.27 points to
10,525.96. It slipped 0.7 percent on Monday to its lowest finish
in four weeks and below its 25-day moving average of around

The broader Topix (.TOPX: ) was unchanged at 935.20.

Commodities saw modest gains as markets steadied on Monday
from jitters caused by plans to stop U.S. banks from taking
excessive risks. Financial markets had tumbled after President
Barack Obama announced plans last Thursday for tougher
regulations on Wall Street. [COM/WRAP] [ID:nN21658127]

Investing Basics

(Editing by Joseph Radford)

Nikkei flat, but resource stocks climb; data eyed