Nikkei inches up; focus on Fed, Obama

* Nikkei range-bound after briefly touching 5-wk low

* Investors find it hard to move before U.S. events -analysts

* Little impact after S&P cuts Japan outlook -analysts

By Aiko Hayashi

TOKYO, Jan 27 (BestGrowthStock) – Japan’s Nikkei average rose 0.3
percent on Wednesday, helped by domestic demand stocks such as
drugmakers, but trade was cautious before a Federal Reserve
policy announcement and President Barack Obama’s State of the
Union address.

Toyota Motor Corp (7203.T: ) fell nearly 2 percent after it
said on Tuesday it will suspend sales of eight models involved in
a recall announced last week for potentially faulty accelerator
pedals. [ID:nN26229890]

Other exporters also fell, partly hurt by a stronger yen,
sending the benchmark to its lowest in five weeks at one stage.

“Investors are taking a wait-and-see stance. Asian stocks
including China slid yesterday and they want to see how they will
fare today, along with currency moves,” said Yutaka Miura, a
senior technical analyst at Mizuho Securities.

“Another focus in the market is to see more details of the
planned restrictions on U.S. banks.”

The benchmark Nikkei (.N225: ) rose 30.34 points to 10,355.62,
after falling as low as 10,299.07, its lowest since Dec. 22.

It fell 1.8 percent the previous day to its lowest finish in
five weeks, hurt as the yen rose broadly after China implemented
a previously ordered increase in reserve requirements for some
banks.

The broader Topix (.TOPX: ) added 0.1 percent to 917.59.

U.S. stocks (Read more about the stock market today. ) fell 5 percent in a three-day span last week
after the Obama administration proposed new restrictions on large
banks.

The Federal Open Market Committee began a two-day meeting on
Tuesday that is expected to yield few policy shifts, with a Fed
statement on the economy and interest rates expected on
Wednesday. [ID:nN26106537]

Obama makes his State of the Union speech on Wednesday.
[ID:nN26112536]

Market analysts saw little immediate impact from Standard and
Poor’s warning on Tuesday that it may cut Japan’s credit rating
unless it produces a credible plan to rein in its soaring debt
and lift growth in an economy plagued by persistent deflation.
[ID:nSGE60P08I]

Stock Market Money

(Editing by Edwina Gibbs)

Nikkei inches up; focus on Fed, Obama