TOKYO, Oct 5, 2010 (AFP) - Japanese share prices were flat on Tuesday as cautious investors awaited the outcome of a two-day Bank of Japan meeting expected to endorse further easing measures to safeguard a fragile recovery.
The headline Nikkei index added 1.53 points, or 0.02 percent to 9,382.59 in the morning session. The Topix index of all first section shares on the Tokyo Stock Exchange edged down 0.07 percent, or 0.54 points, to 822.20.
Many analysts expect the BoJ may to take additional steps to ease monetary policy amid deepening concerns about the economic outlook, and to combat the yen's strength, which threatens Japan's crucial growth-driving exports.
Nine out of 10 economists surveyed by Dow Jones Newswires expect the central bank to expand its liquidity-provision measures -- possibly by increasing the supply of six-month loans or buying more short-term government notes.
The central bank is expected to keep its key rate at 0.1 percent, unchanged since December 2008.
"The key to today's policy board meeting is whether the BoJ can take the step of (expanding its) purchase of assets (including its Japanese government bond buying)," Masayoshi Yano, senior market analyst at Meiwa Securities, told Dow Jones Newswires.
Companies with strong European exposure were lower as persistent fears over the eurozone economy dragged on the euro. Nikon lost 1.87 percent while Olympus was down 0.68 percent.
Other exporters fell. Sharp was off 1.67 percent, Nissan Motor was off 1.46 percent and Toyota Motor was down 1.08 percent.
