TOKYO, April 30 — Japanese stocks fell ahead of a Bank of Japan policy decision and after the Federal Reserve kept interest rates on hold as data showed the world’s biggest economy barely grew last quarter.

Honda Motor Co tumbled 7.6 per cent and Shin-Etsu Chemical Co slid 5.9 per cent after reporting profit that missed analyst estimates. Takeda Pharmaceutical Co slumped 3.7 per cent after saying it will pay US$2.37 billion (RM8.4 billion) to resolve US lawsuits accusing the company of hiding cancer risks from its Actos diabetes medicine. TDK Corp gained 6.1 per cent, the most on the Nikkei 225 Stock Average, as its profit forecast beat estimates.

The Topix index lost 1.4 per cent to 1,605.05 as of 9:30 am in Tokyo, heading for the biggest loss in a month as it reopened after a holiday. All but three of its 33 industry groups fell. Volume on the measure was about 20 per cent above its 30-day intraday average. The Nikkei 225 Stock Average slipped 1.5 per cent to 19,769.04.

“It’s looking doubtful that the US will be able to raise rates this year,” Mitsushige Akino, an executive officer at Ichiyoshi Asset Management Co in Tokyo, said by phone. “I don’t expect any major changes from the BOJ. There might be some selling from disappointment, but it’ll be minimal.”

The BOJ will maintain its record stimulus today in Tokyo, according to 32 of 34 economists surveyed by Bloomberg.

The Standard & Poor’s 500 Index lost 0.4 per cent in New York yesterday after Fed officials kept key rates near zero, saying first-quarter weakness that saw the economy almost grind to a halt was partly due to “transitory factors,” and they expect growth to pick up.

US GDP

Policy makers said they’ll boost US rates when they see further labour-market improvement and are “reasonably confident” inflation will move back to their 2 per cent goal over time. They have said their decision will be guided by the latest data. US gross domestic product expanded 0.2 per cent last quarter on an annualised bases, trailing the 1 per cent growth predicted by economists.

E-mini futures on the S&P 500 were little changed.

About 330 Topix-listed companies report results this week, according to data compiled by Bloomberg. Those releasing results today include Sony Corp, Murata Manufacturing Co, Nitto Denko Corp, Fujitsu Ltd, Japan Tobacco Inc., Nomura Holdings Inc., airlines, shipping companies and brewers.

Japanese industrial production fell 0.3 per cent in March from February, beating analyst estimates for a 2.3 per cent contraction, data showed today in Tokyo. — Bloomberg