TOKYO, Nov. 10 (Xinhua) -- Japan's benchmark Nikkei stock index closed lower Thursday, tracking losses on Wall Street overnight, with domestic companies reporting subpar earnings losing ground amid a circumspect mood ahead of the release of U.S. inflation data.

The 225-issue Nikkei Stock Average dropped 270.33 points, or 0.98 percent, lower from Wednesday to close the day at 27,446.10.

The broader Topix index, meanwhile, lost 12.83 points, or 0.66 percent, to finish at 1,936.66.

Local brokers said that investor sentiment was dented by U.S. shares retreating overnight, as investors awaited the outcome of the U.S. midterm elections, as well as key U.S. inflation data.

The U.S. inflation data for October is seen as a major barometer of the future course of the U.S. Federal Reserve's interest rate hikes, they explained.

A rise in inflation could see the U.S. Federal Reserve further hike its interest rates, which in turn would push up borrowing costs for companies and households and possibly drive the U.S. economy closer to recession, market analysts here said.

Takuro Hayashi, from IwaiCosmo Securities, previously said that, "Ahead of CPI, investors have shifted to a wait-and-see posture."

Investment strategists here also noted that issues were sold following domestic companies' earnings reports missing median market expectations.

"Wall Street's decline overnight affected the Japanese market to a certain extent but investors sold shares as they were disappointed by companies which reported worse-than expected outlooks," Chihiro Ohta, assistant general manager at the investment research and investor services at SMBC Nikko Securities, was quoted as saying.

By the close of play, oil and coal product, iron and steel, and transportation equipment issues comprised those that declined the most.

Honda Motor reversed 4.1 percent after its upwardly revised forecast missed expectations, causing other automaker-linked issues to lose ground.

Among these, Toyota Motor ended the day 1.5 percent lower.

The Nikkei's biggest loser was Yokohama Rubber, who tumbled 6.5 percent, while rival Sumitomo Rubber Industries plummeted 12.7 percent, after the tire maker lowered its profit outlook.

Bridgestone, meanwhile, also closed in negative territory, losing 3.2 percent by the close.

Watch maker Casio Computer was another notable loser, falling 5.7 percent after downwardly revising its annual operating profit forecast.

Bucking the downward trend, Seven & i Holdings, added 1.4 percent on reports it may sell its department store unit, while Kajima and Kawasaki Heavy Industries jumped 6.9 and 5.3 percent, respectively, as the pair upped their profit outlooks.

Issues that fell outpaced those that rose by 1,141 to 620, while 76 ended the day unchanged.

On the Prime Market on Thursday, 1,270.37 million shares changed hands, down from Wednesday's volume of 1,281.77 million shares.

The turnover on the penultimate trading day of the week came to 3,081.28 billion yen (21.06 billion U.S. dollars). Enditem

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