TOKYO, Nov 2 (Reuters) - Japanese shares dipped on Tuesday, after hitting a month’s high in the previous session, as investors geared up for the U.S. Federal Reserve’s timetable to roll back stimulus measures at its meeting this week.
The Nikkei share average fell 0.28% to 29,563.37, a day after posting its biggest daily gain since June following a solid election victory by Prime Minister Fumio Kishida’s ruling coalition. The broader Topix fell 0.62% to 2,032.15.
“The market is looking to what the Federal Reserve will do with its tapering,” said Yuya Fukue, a trader at Rheos Capital Works.
“While November tends to be a good month for stocks, the stock market could be vulnerable if the pace of the Fed’s tapering will be quicker than expected.”
The Fed will announce its policy decision on Wednesday when Japanese markets will be shut for a public holiday.
Ahead of the event, domestic earnings results also continued to weigh on markets.
Pola Orbis dropped 8.8% after the cosmetics maker reported disappointing quarterly results.
Ship builder Hitachi Zosen lost 6.7%, while drugmaker Kyowa Kirin shed 6.3% also on earnings disappointment.
On the other hand, TDK Corp jumped 8.9%, while Kyocera gained 5.5% after the electronic parts makers reported brisk results.
Dexerials rose by its daily limit of 21.4%, after the maker of optical and electronic materials posted strong profits, and announced a dividend hike and stock buyback plan.
More earnings reports are scheduled on Tuesday, including Nippon Steel, Mitsubishi Chemical and Mitsui & Co.
(Reporting by Hideyuki Sano; Editing by Ramakrishnan M.)