TOKYO (Kyodo) -- Tokyo stocks ended lower Wednesday, as investors were cautious about prospects of the U.S. shares after recent firm economic data dented hopes for imminent interest rate cuts by the Federal Reserve.

The 225-issue Nikkei Stock Average ended down 102.24 points, or 0.26 percent, from Tuesday at 39,981.06. The broader Topix index finished 16.57 points, or 0.59 percent, lower at 2,770.00.

On the top-tier Prime Market, decliners were led by insurance, securities house, and real estate issues.

The U.S. dollar traded without clear direction mostly around the 158 yen line in Tokyo amid a lack of trading incentives.

At 5 p.m., the dollar fetched 158.11-13 yen compared with 158.03-13 yen in New York and 157.48-51 yen in Tokyo at 5 p.m. Tuesday.

The euro was quoted at $1.0332-0333 and 163.37-41 yen against $1.0335-0345 and 163.30-40 yen in New York and $1.0414-0415 and 164.02-06 yen in Tokyo late Tuesday afternoon.

The yield on the benchmark 10-year Japanese government bond rose to 1.175 percent, up 0.035 percentage point from Tuesday's close, marking its highest level since July 2011, after the debt was sold following a sharp rise in U.S. Treasury yields.

Stocks were weighed down by Wall Street losses overnight, as stronger-than-expected U.S. economic data fueled concerns that inflation in the country would remain high, leading the Fed to reduce interest rates at a slower pace, brokers said.

"Investors were reluctant to buy shares actively ahead of U.S. employment data on Friday," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.

Meanwhile, the market's declines were trimmed by buying of export-related issues on the back of a recently weakening yen and high-tech shares prompted by rising U.S. Nasdaq index futures.