TOKYO, Feb. 1 (Xinhua) -- Japan's benchmark Nikkei stock index reversed early gains to close flat Wednesday, as investors locked in gains and took a wait-and-see approach ahead of the outcome of the U.S. Federal Reserve's meeting later in the day.
The 225-issue Nikkei Stock Average edged up 19.77 points, or 0.07 percent, from Tuesday to close the day at 27,346.88.
The broader Topix index, meanwhile, shed 3.04 points, or 0.15 percent, to finish at 1,972.23.
Local brokers said that stocks here rallied in early trade, on the back of Wall Street's overnight gains, following U.S. data showing a drop in the pace of labor costs contributed to the view that the Fed may slow the pace of its aggressive rate hikes.
"For the moment, the market's focus is on the outlook for monetary policy, and if the U.S. economy will have a soft or hard landing," Maki Sawada, a strategist at Nomura Securities, was quoted as saying.
As the Fed meeting outcome drew closer, however, with mixed views as to the future course of the central bank's monetary policy, investors, as with the previous session, opted to lock in gains rather than chase the market's upside higher, dealers here said.
"Investors are divided over the Fed's course of action after this meeting, as some say rate hikes will continue while others expect a pause in the next meeting and rate cuts later this year," Makoto Sengoku, senior equity market analyst at Tokai Tokyo Research Institute, was quoted as saying.
Domestic firms' earnings reports and outlooks swayed investors one way or the another, market strategists said, regarding individual stocks.
Among these, semiconductor-testing device maker Advantest was a notable gainer, jumping 4.0 percent, after announcing a 60 percent rise in its net profit in the nine months ending December.
Chip-making equipment maker Screen Holdings, was another winner, climbing 5.1 percent, as was electronic component maker Alps Alpine, who finished 5.1 percent higher. The firms both reported solid earnings.
Tokyo Gas was the Nikkei's biggest winner, leaping 5.5 percent, after reporting robust financial results.
Conversely, housing materials maker TOTO was the market's biggest loser, tumbling 8.4 percent, after announcing disappointing earnings results, with Seiko Epson, an office equipment manufacturer, falling 5.8 percent, after reporting subpar earnings.
East Japan Railway's earnings results for the nine months ending December also disappointed investors, with the railway operator closing 3.0 percent lower.
By the close of play, marine transportation, mining, and insurance issues comprised those that gained the most.
Land transportation, glass and ceramics product, and construction issues, meanwhile, led notable decliners.
The turnover on the third trading day of the week came to 2,857.01 billion yen (21.97 billion U.S. dollars). ■