Japanese Shares Rise in Cautious Trade

The Nikkei 225 Index rose 0.24% to close at 27,886 while the broader Topix Index added 0.12% to 1,950 on Tuesday, though gains were capped by market caution as better-than-expected US services activity data stoked worries that the Federal Reserve could 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 (2%), Tokyo Electron (1%),Nintendo (1.4%), Kawasaki Kisen (2.1%) and Tokio Marine Holdings (1.5%).

Meanwhile, software and applications stocks declined, including Recruit Holdings (-1.6%), Shift inc (-2.6%) and M3 Inc (-3.6%).