Japanese Shares Wobble on Fed Jitters

The Nikkei 225 Index rose 0.1% to around 27,850 while the broader Topix Index shed 0.05% to 1,947 in mixed trade on Tuesday, with Japanese shares struggling for direction as better-than-expected US services activity data stoked worries that the Federal Reserve will need to raise interest rates for longer.

Investors also reacted to data showing household spending in Japan rose the least in five months, while real wages fell to an over seven-year low as rising inflation outpaced modest growth in nominal wages.

Notable gains were seen from select index heavyweights such as Fast Retailing (1.1%), Mitsubishi UFJ (1.1%) and Kawasaki Kisen (2.5%).

Meanwhile, technology stocks tracked their US peers lower, with sharp losses from SoftBank Group (-1.6%), Recruit Holdings (-1.3%) and M3 Inc (-3.2%).