TOKYO, Sept 7 (Reuters) - Japanese stocks fell on Wednesday after exporters and other cyclical shares took a hit on a strengthening yen as weak U.S. service sector activity reduced the chances of a near-term interest rate increase by the U.S. Federal Reserve.
Given the strength in the service sector has been making up for softness in U.S. manufacturing in the past year or so, the data was a blow to the case for the Fed to raise interest rates as soon as this month.
The Nikkei ended 0.4 percent lower at 17,012.44.
The broader Topix index dropped 0.2 percent to 1,349.53, while the JPX-Nikkei Index 400 fell 0.3 percent to 12,119.24. (Reporting by Ayai Tomisawa; Editing by Biju Dwarakanath)