Mumbai, Aug. 31 -- Japanese stocks closed mixed on Monday as renewed expectations of a US rate hike in September weighed on market sentiment. The Nikkei 225 fell 0.14% to 66,312, while the broader Topix gained 0.23% to 4,156.

Investor sentiment was hurt after Fed Chair Kevin Warsh took a hawkish tone in his Jackson Hole speech. He said inflation is not slowing enough and stressed the Fed's commitment to bringing inflation back to 2%, raising concerns that US interest rates could remain higher for longer.

Higher oil prices also added pressure after the US military targeted Iranian rocket launchers that were preparing to deploy mines in the Strait of Hormuz.

On the domestic front, Japan's industrial output unexpectedly increased in July,...