The Nikkei share average ended 0.03% lower at 27,685.47, snapping a fourth straight winning session, after trading most of the session in positive territory. The broader Topix rose 0.21% to 1,983.40. Investors were keeping a close eye on a speech by the Fed Chair due later in the day, for any change in the central bank's rhetoric, after data last week showed robust job growth, as well as strong services activity in January. "The market lost direction as the earnings season continues in Japan. There was a mixture of buying and selling based on outcomes," said Chihiro Ohta, assistant general manager at the investment research and investor services at SMBC Nikko Securities.
"Also market participants want to know what Fed Chair Powell will say later in the day." Uniqlo brand owner Fast Retailing lost 0.52%, dragging the Nikkei the most. Technology investor SoftBank Group lost 1.01% and staffing agency Recruit Holdings fell 1.63%.
JFE Holdings tanked 8.47% to become the worst performer after Japan's second-biggest steelmaker lowered its forecasts for crude steel output and full-year profit. The steel sector lost 2.95% to become the worst performer among the 33 industry sub-indexes.
Stronger growth in Japanese wages have driven expectations that the BOJ would alter its ultra-rate policy, said Yugo Tsuboi, senior strategist at Daiwa Securities.
Government data showed Japanese real wages rose for the first time in nine months thanks to robust temporary bonuses, but uncertainty remains on whether pay hikes will continue to sustain Japan's economic recovery. The banking sector rose 2.51% to be the best performer.
Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group rose 3.2% and 2.1%, respectively. (Reporting by Junko Fujita; editing by Uttaresh.V, Nivedita Bhattacharjee)
