TOKYO, Nov. 30 (Xinhua) -- Japan's benchmark Nikkei stock index closed lower Wednesday as domestic factory output data fell for a second straight month, along with concerns over ongoing U.S. interest rate hikes, sparking fears over an economic slowdown.
The 225-issue Nikkei Stock Average dropped 58.85 points, or 0.21 percent, from Tuesday to close the day at 27,968.99.
The broader Topix index, meanwhile, lost 7.40 points, or 0.37 percent, to finish at 1,985.57.
Dealer here said that investors were in a risk-off mood following data showing factory output in Japan fell 2.6 percent in October, marking the second straight month of decline, due to slowing overseas demand.
"Factory output was weaker than expected, and this data came out as concerns about a slowdown in the global economy were looming," Shigetoshi Kamada, general manager at the research department of Tachibana Securities, was quoted as saying.
Adding to a risk-averse mood, market strategists said that recent hawkish remarks from U.S. Federal Reserve officials suggesting that hefty interest rate hikes could continue to tame inflation, reignited concerns over the U.S. economy falling into a recession and a broader global economic slowdown.
Investors, they said, were in a circumspect mood ahead of a speech expected to be delivered by U.S. Federal Reserve Chairman Jerome Powell later in the day.
"Concerns on how U.S. interest rates will move were priced in the declines in stocks. Investors were not in the mood to buy," Naoki Fujiwara, senior general manager at Shinkin Asset Management Co., was quoted as saying.
On the Prime Market, precision instrument, electric power and gas, and retail issues comprised those that declined the most.
Technology shares followed their U.S. peers lower overnight and were hit by Japan's weaker-than-expected factory output data, with TDK edging down 0.3 percent, while Sony Group lost 1.0 percent.
Nikkei heavyweight Fast Retailing, operator of the Uniqlo clothing chain stores, weighed on the broader market, ending 0.8 percent lower.
Other notable losers included contact lens maker Menicon dropping 3.5 percent, while optical glass maker Hoya lost 2.1 percent.
Issues that fell outpaced those that rose by 1,287 to 488, while 61 ended the day unchanged.
On the Prime Market on Wednesday, 1,664.50 million shares changed hands, rising from Tuesday's volume of 1,156.65 million shares.
The turnover on the third trading day of the week came to 4,151.61 billion yen (29.95 billion U.S. dollars). ■