TOKYO: Tokyo stocks slipped on Wednesday, dragged down by falls in tech shares on Wall Street as investors awaited the release of US inflation data.
The benchmark Nikkei 225 index dropped 0.21 percent, or 69.85 points, to 32,706.52, while the broader Topix index gave up 0.05 percent, or 1.27 points, to 2,378.64.
Tokyo shares zigzagged in a narrow range as investors mostly adjusted positions before US consumer price index data to be released later in the day.
This could provide a major clue to gauge future actions by the Federal Reserve as it fights inflation.
“Both the Nikkei and the Topix spent all day without finding a clear direction,” said Chihiro Ota of SMBC Nikko Securities. “There was no meaningful momentum in either direction. That’s also the mood of the global market,” he added.
Daiwa Securities echoed the view and said Tokyo investors became “cautious” about how the US data may impact Wall Street.
The dollar fetched 147.28 yen, against 147.15 yen seen Tuesday in New York.
Tokyo tech shares struggled, trailing the overnight falls of the Nasdaq.
Chipmaker Murata Manufacturing lost 1.39 percent to 8,080 yen, while parts producer Taiyo Yuden fell 1.49 percent to 4,235 yen.
High-tech investor SoftBank Group lost 1.63 percent to 6,631 yen, while Sony Group fell 1.35 percent to 12,445.
Meanwhile, banking shares continued to benefit from a recent media interview by Bank of Japan governor Kazuo Ueda who said policymakers may have enough data by the year end to decide whether to start raising interest rates.
The comment was seen as a hint that the central bank may start tweaking its ultra easy monetary policy.
Mitsubishi UFJ Financial Group rose 3.13 percent to 1,317 yen. Mizuho Financial Group rose 0.94 percent to 2,624.5 yen.
Toyota rose 1.90 percent to 2,707.5 yen. Honda also gained 0.44 percent to 5,061.