Tokyo stocks were directionless Friday morning as the market awaited the outcome later in the day of a Bank of Japan meeting, with investors hoping for clues on whether the central bank will move toward normalizing monetary policy.
The 225-issue Nikkei Stock Average fell 11.45 points, or 0.03 percent, from Thursday to 38,709.02. The broader Topix index was up 7.22 points, or 0.26 percent, at 2,739.00.
The U.S. dollar moved little in the lower 157 yen range in Tokyo amid a wait-and-see mood ahead of the BOJ policy meeting results.
At noon, the U.S. dollar fetched 157.32-34 yen compared with 156.98-157.08 yen in New York and 157.26-28 yen in Tokyo at 5 p.m. Thursday.
The euro was quoted at $1.0741-0745 and 168.98-169.06 yen against $1.0732-0742 and 168.61-71 yen in New York, and $1.0814-0815 and 170.07-11 yen in Tokyo late Thursday afternoon.
Stocks opened lower but lacked clear direction throughout the morning as investors adjusted positions ahead of the outcome of the BOJ meeting and press conference by chief Kazuo Ueda in the afternoon, analysts said.
"With a reduction in government bond purchases already priced into the market to some extent, the key focus will be on the timing and scale of the reduction," said Chihiro Ota, assistant general manager of investment research at SMBC Nikko Securities Inc.
Market participants were also eagerly watching for hints regarding future interest rate hikes at Ueda's press conference, scheduled to be held after the market closes on Friday, Ota said.
