TOKYO, Jan 26 (Reuters) - Japan's Nikkei index ended lower
on Wednesday, dragged down by technology heavyweights after
their U.S. peers slumped overnight on concerns over an
increasingly hawkish Federal Reserve and tensions surrounding
The Nikkei share average closed down 0.44% at
27,011.33, after touching a 13-month low earlier in the session.
The broader Topix fell 0.25% to 1,891.85.
U.S. stocks whipsawed between steep losses and modest gains
before ending well off session lows, with rate-sensitive tech
stocks weighing most heavily.
The Fed is due to update its policy plan, likely fleshing
out timing on expected rate hikes and shrinking its massive
"Investors are just waiting for the end of the Fed's meeting
and how the market will move after that will totally depend on
the outcome," said Takatoshi Itoshima, a strategist at Pictet
"Looking at the sell-off today, the market is expecting a
hawkish move and the point is how hawkish the Fed will be."
Technology heavyweights fell, with semiconductor and
electronics company Tokyo Electron losing 0.81%, robot
maker Fanuc falling 3.29% and phone operator KDDI
Toyota Motor fell 0.67%, shedding early gains
fuelled by the auto maker's plans to produce a record 11 million
cars in fiscal 2022.
Rival Suzuki Motor jumped 5.77%, and was the top
gainer in the Nikkei, after its Indian arm Maruti Suzuki
improved its margins for the third quarter by raising
Game maker Nintendo climbed 4.36% after Nomura
Securities rated its shares "buy".
SoftBank Group gained 1.72% following a report,
which cited that Nvidia was preparing to abandon its
purchase of Arm Ltd from the Japanese technology investor.
(Reporting by Junko Fujita; Editing by Subhranshu Sahu and