Nikkei slips for fourth session as markets brace for Fed and BOJ rate calls

Japan's benchmark Nikkei 225 slipped 0.03% to 63,462.01 in early Wednesday trading, on course for a fourth consecutive session of losses, even as the broader market moved higher. The Topix gained 0.79% to 4,069.02, having touched an intraday high of 4,072.31.

Investors stayed cautious before two central bank decisions: the Federal Reserve later on Wednesday and the Bank of Japan on Friday. Both are widely expected to raise interest rates. Overnight, Wall Street extended its selloff, pressured by rising U.S. Treasury yields, debt concerns and surging crude prices.

Trade data released on Wednesday showed Japan's exports climbed 19.3% year-on-year, but imports jumped 28%, leaving a trade deficit of 1.106 trillion yen (about $7.5 billion) and highlighting the strain from higher energy costs.

"U.S. markets ended lower but losses were limited, and investors are likely to stay on the sidelines ahead of the Fed and the Bank of Japan's policy meeting, making sharp moves unlikely," Yoshitaka Araya of Monex Securities said in a note.

Oil and coal product shares led gains among Topix industry groups, rising 5.14%, helped by a jump in Idemitsu Kosan that put the stock on track for a record close. Mining and marine transportation shares also advanced, up 3.37% and 2.33% respectively, while information and communication shares lagged with a 1.20% decline.

Market breadth was positive, with 172 advancers on the Nikkei 225 against 52 decliners and one unchanged. The largest percentage gainers were Idemitsu Kosan, up 5.59%, Eneos Holdings, up 5.24%, and Mitsui Chemicals, up 3.80%. The biggest losers were Sumitomo Pharma, down 4.74%, Otsuka Holdings, down 4.42%, and Mercari, down 4.37%.