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Japan’s Nikkei closed lower on Wednesday, tracking overnight declines on major U.S. stock indexes, although the losses were limited as some investors scooped up beaten-down shares.

The Nikkei share average ended 0.26% lower at 26,677.80, while the broader Topix dipped 0.09% to 1,876.58.

The S&P 500 and the Nasdaq finished in the red overnight on worries that aggressive moves to curb decades-high inflation might tip the U.S. economy into recession.

“We have not seen any market-moving cues and investors were cautious in making bets ahead of the next FOMC (the U.S. Federal Open Market Committee) meeting,” said Shuji Hosoi, a senior strategist at Daiwa Securities.

“There has not been any sign that would ease concerns about economic slowdown. However, domestic equities have fallen to a level where investors could buy them cheap.”

The Nikkei, which has had a rollercoaster ride in the past year, is forecast to climb more than 7% to 29,000 by end-2022, a level last seen at the start of January, according to analysts in a Reuters poll.

Staffing agency Recruit Holdings fell 3.31% and was the biggest drag on the Nikkei, while technology investor SoftBank Group slipped 1.71%.

Game maker Nintendo fell 4.25%.

Toshiba jumped 2.41% after a report said state-backed fund Japan Investment Corp (JIC) is considering the acquisition of the Japanese conglomerate.

Drug maker Daiichi Sankyo rose 3.12% and was the top gainer among the top 30 core Topix names, followed by lens maker Hoya, which gained 2.7%.

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