"Investors who expect Bernanke to deliver a clear commitment to QE3 might be disappointed"
- Mikio Kumada, a global strategist for LGT Capital Management
Retail sales in Japan fell more than economists forecast in July. Sales declined 0.8 per cent, for the first time in eight months, said the Ministry of Economy, Trade and Industry.
Japanese stocks fell on Thursday after a report showed retail sales declined and amid speculations the Fed will fail to deliver bold measures on Friday.
The Nikkei 225 Stock Average erased 0.95 per cent, or 86.03 points, to 8,983.78. The broader Topix Index fell 0.83 per cent, or 6.24, to 743.79.
"Investors who expect Bernanke to deliver a clear commitment to QE3 might be disappointed, which could trigger some sort of sell-off in so-called risky assets," said Mikio Kumada, a Singapore-based global strategist for LGT Capital Management.
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