Investors reacted to encouraging service sector activity data for February and reports suggesting that the U.S. government is working to block exports of AI semiconductors to China.
Market players are awaiting economic indicators and events this week, including US jobs data, congressional testimony from Federal Reserve Chair Jerome Powell, President Joe Biden's State of the Union address and a European Central Bank decision.
At closing bell, the 225-issue Nikkei Stock Average index edged down 11.60 points, or 0.03%, to 40,097.63. The broader Topix index of all First Section issues on the Tokyo Stock Exchange advanced by 13.65 points, 0.5%, to 2,719.93.
In corporate news, J Towers shares tumbled almost 5% after the company completed the payment for the new shares issued in an international offering.
ECONOMIC NEWS: Tokyo's headline consumer price index, or CPI, increased to 2.6% year over year in February from 1.6% in January, data from the Statistics of Japan showed.
Japan's Service Sector Expands in February-The au Jibun Bank Japan Services PMI was revised higher to 52.9 in February from the flash reading of 52.5, indicating the 18th consecutive month of expansion in the service sector. The growth was supported by a steep rise in new business, driven by tourism demand and new product launches. However, growth was mainly driven by domestic demand, as foreign demand stagnated.
Japan's Private Sector Growth Moderates in February- Japan's private sector activity rose for the second straight month in February, with the au Jibun Bank Japan Composite PMI revised upward to 50.6 from the flash reading of 50.3. The service sector saw a stronger increase in new orders, while manufacturing contracted sharply. Input cost inflation eased, but output charges rose solidly. Business sentiment weakened to a four-month low.
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