Japan's Nikkei falls for 4th session as weak factory output weighs

Japan's Nikkei index fell for a fourth straight session on Wednesday, as weak factory output data added to concerns of a global economic slowdown, with investors awaiting U.S. Federal Reserve Chair Jerome Powell's speech for policy clues.

The Nikkei share average NI225 ended 0.21% lower at 27,968.99, after hitting its lowest since Nov. 16. The broader Topix TOPIX slipped 0.37% to 1,985.57.

Japan's factory output fell for a second consecutive month in October, as stalling global demand and lingering supply bottlenecks put a lid on Japanese manufacturers' production plans.

"Factory output was weaker than expected, and this data came out as concerns about a slowdown in the global economy were looming," said Shigetoshi Kamada, general manager at the research department of Tachibana Securities.

"And, China's PMI was weak as well, which cemented investor worries that the economic situation is worsening."

China's factory activity contracted at a faster pace in November, weighed down by softening global demand and COVID-19 restrictions.

Fed Chair Powell will speak at a Brookings Institution event later in the day about the outlook for the U.S. economy and the labour market. Investors will be looking for clues about when the Fed will slow the pace of its aggressive rate hikes.

Investors are also waiting for U.S. labour market data for November and gross domestic product numbers for the third quarter.

In Japan, precision machinery makers (.IPRCS.T) fell 1.24%, with optical glass maker Hoya 7741 slipping 2.09% and contact lens maker Menicon 77780 losing 3.49%.

The utility sector (.IEPNG.T) fell 1.3%, with Tokyo Electric Power Company Holdings 9501 losing 3.29%.

Fast Retailing 9983, known for its Uniqlo brand, lost 0.8% and was the top drag on the Nikkei.