Japan's Nikkei inches higher on Fast Retailing, tech shares boost

Japan's Nikkei index edged higher on Monday, led by Uniqlo brand owner Fast Retailing and heavyweight technology stocks.

The Nikkei share average NI225 was up 0.11% at 27,808.74 by the midday break, while the broader Topix TOPIX lost 0.5% to 1,944.21.

"Today's market showed little direction as U.S. jobs data did not become a market-moving catalyst. But investors have a fresh view on heavyweight technology stocks, which underpinned the Nikkei," said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.

The S&P 500 SPX and the Nasdaq Composite IXIC ended slightly lower, while the Dow Jones Industrial Average DJI edged higher on Friday, as the November payrolls report fuelled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation.

In Japan, Fast Retailing 9983 rose 3.8% and gave the biggest boost to the Nikkei after the clothing store operator last week said average purchases per customer rose 6.5% in November.

Chip-making equipment maker Tokyo Electron 8035 edged up 0.6% and air-conditioning maker Daikin Industries 6367 gained 0.45%.

The banking sector TTOPIXB lost 1.06%, amid declines in U.S. Treasury yields, with Resona Holdings 8308 falling 3.86% to become the biggest loser on the Nikkei.

Robot maker Fanuc 6954 rose 2.44% and became the biggest support to the Topix.

Toyota Motor 7203 fell 1.07% and was the biggest drag on the Topix. Nissan Motor lost 2.93% and Mitsubishi Motors 7211 fell 2.55%.

The auto sector (IITEQP.T) dropped 1.14%.