Japan stocks seesaw ahead of US CPI data, department stores gain

TOKYO: Japanese shares seesawed on Wednesday as investors nervously awaited US consumer price data due later in the day, while department store operator J. Front Retailing jumped on positive earnings and hopes of economic reopening.

By 0145 GMT, the Nikkei average was down 0.12% at 28,198.12, while the broader Topix lost 0.21% to 1,978.56.

As strong US CPI data could raise bets of earlier-than-expected rate hikes by the Federal Reserve, investors rotated out of cyclical shares with global exposure to domestic demand-oriented shares that could benefit from economic reopenings.

Red-hot shippers fell 2.6%, while steelmakers lost 1.7%. Semi-conductor shares were also soft after US peers slipped to 2-1/2-month lows, with Screen Holdings down 2.7% and Shin-etsu Chemical shedding 1.4%.

Japan shares track Wall Street lower, tech down on US rate hike fears

"With the US economy appearing to be slower than expected and China growth outlook marred by Evergrande's debt problems, investors are shifting to domestic demand-oriented shares," said Masayuki Kubota, chief strategist at Rakuten Securities.

Film maker Toho gained 5.1% after reporting a jump in profits thanks to the reopening of cinema and box-office success of its animation film "Belle".

Department store operator J.Front Retailing rose 9.4% as it returned to net profit in the quarter to August after two quarters of losses.

Rival Takashimaya also rose 1.3% even after it cut its annual outlook due to weak demand.

Shift jumped 12.1% after the software testing firm reported bumper earnings.

On the other hand, Nippon Paint tumbled 7.9% after it cut earnings guidance due to rising costs as well as slow sales to car makers, which are slashing production due to a chip shortage.