TOKYO: Tokyo stocks closed lower on Wednesday, following overnight falls of Wall Street tech shares and with key US inflation data set to be released later in the day.

The benchmark Nikkei 225 index dropped 0.65 percent, or 180.63 points, to end at 27,819.33, while the broader Topix index fell 0.17 percent, or 3.37 points, to 1,933.65.

The dollar stood at 134.94 yen, against 135.12 yen Tuesday in New York.

Global investors are awaiting US inflation data for July, which is broadly expected to indicate a slowdown in price increases.

Core data excluding food and energy may still show soaring inflation, however.

“If the consensus is proven right, the Fed will have no choice but to keep its hawkish rhetoric in place,” said Rodrigo Catril at National Australia Bank.

Tokyo shares came under pressure from overnight falls of US tech shares, driven down by a warning over future risks from computer memory firm Micron Technology, following a similar caution by Nvidia on Monday.

Tokyo shares end down ahead of US inflation data

“No active bargain-hunting moves” were seen in afternoon trade ahead of the US inflation announcement, Okasan Online Securities said.

Investors were also cautious because the Tokyo market will be closed for a public holiday on Thursday, the brokerage noted.

Advantest, a major producer of testing kits for semiconductors, plunged 3.56 percent to 8,120 yen, and chip-making equipment manufacturer Tokyo Electron dropped 2.61 percent to 44,410 yen.

Toshiba ended down 1.25 percent at 5,234 yen. After the closing bell, the industrial conglomerate reported a 43.9 percent year-on-year rise in net profit for the April-June quarter.

Honda ended up 1.12 percent at 3,426 yen. After market close, the automaker said first quarter net profit declined 32.9 percent on-year.

However, Honda revised up its annual forecast for sales and operating profit, to 16.75 trillion yen ($124 billion) and 830 billion yen respectively.