CAJ Canon Inc

Stocks in Japan fell Wednesday amid disappointing corporate earnings ahead of decisions by central banks in the U.S. and Japan, while elsewhere in the region, energy shares rallied as oil prices reached new highs.

The Nikkei Stock Average fell 0.5% as traders were reluctant to put on big trades. Among individual stocks, bicycle parts maker Shimano dropped 4.4% after the company cut its net-profit projection for 2016, citing a weaker U.S. dollar against the yen.

Electronics maker Canon lost 5.8% after the firm lowered its sales and profit projections for 2016. Canon cited pressures from slower economic growth in China and other emerging markets, as well as a higher yen.

Gains in stock markets across the globe have been capped this week, as investors await a monetary-policy update from the U.S. Federal Reserve's Federal Open Market Committee later Wednesday. The bank isn't expected to raise interest rates but may hint about whether it will act in June. The Bank of Japan will announce its decision Thursday, though views are split on whether the BOJ will bolster its easing package.

In Australia, the S&P/ASX 200 was up 0.6% after the government reported weaker-than-expected first-quarter inflation, fueling expectations the Reserve Bank of Australia could soon cut rates.

The RBA has held its cash rate target steady at a record low of 2.0% since May last year, with the bank pointing to strong job creation and solid business confidence and trading conditions as reasons against rate cuts. The Australian dollar fell 1.1% against the U.S. dollar after the inflation data was released.

In commodities, the S&P/ASX 200's energy sector was up 0.6% after U.S. oil prices settled at a new 2016 high overnight. Energy stocks have gained 14% in the past three months, outpacing most other sectors in the country's main benchmark.

Brent crude oil was last up 1.2% at $46.29 a barrel during Asia hours.

Still, "the Fed may also begin to talk up rate hikes in the near future and that could also rally the [U.S. dollar], potentially providing the precipitating factor that could see commodities slide again," said Angus Nicholson, a market analyst at brokerage IG.

Among other Asian markets, the Shanghai Composite Index was flat, while Hong Kong's Hang Seng Index fell 0.3% and South Korea's Kospi was down 0.2%.

Kosaku Narioka contributed to this article.

Write to Chao Deng at Chao.Deng@wsj.com

(END) Dow Jones Newswires

April 27, 2016 00:35 ET (04:35 GMT)

Canon (NYSE:CAJ)
Historical Stock Chart
From Mar 2024 to Apr 2024

Canon (NYSE:CAJ)
Historical Stock Chart
From Apr 2023 to Apr 2024