Investors are also paying close attention to the Bank of Japans policy meeting next week, with growing speculation it could end its negative interest rate policy.
The 225-issue Nikkei Stock Average index declined 101.54 points, or 0.26%, to finish at 38,695.97. The broader Topix index of all First Section issues on the Tokyo Stock Exchange sank 8.73 points, 0.33%, to 2,648.51.
Total 23 of 33 industry sectors of the Tokyo Stock Exchange's declined, with Marine Transportation, Pulp & Paper, Mining, Pharmaceutical, and Machinery issues being notable losers, while Electric Power & Gas, Nonferrous Metals, and Insurance issues were notable gainers.
Shares of Canon Electronics tumbled 7.4% to 2,362 yen after a Tokyo start-up's rocket launch exploded seconds after blast-off.
Among major blue-chip shares, SoftBank Group sank 0.2% to 8,552 yen, Toyota trimmed 0.9% to 3,444 yen and Uniqlo operator Fast Retailing slid 0.7% to 43,180 yen.
CURRENCY NEWS: Japanese yen fetched 147.48 per US dollar compared with 147.7 per US dollar in Tokyo on Tuesday.
Powered by Capital Market - Live News