Tokyo stocks ended lower on Wednesday as investors locked in gains after the key Japanese indexes hit 34-year highs in recent trading sessions, while the yen's slight strengthening against the U.S. dollar further dented sentiment.
The 225-issue Nikkei Stock Average ended down 291.09 points, or 0.80 percent, from Tuesday at 36,226.48. The broader Topix index finished 12.85 points, or 0.51 percent, lower at 2,529.22.
On the top-tier Prime Market, decliners were led by precision instrument, real estate and construction issues.
The U.S. dollar slipped to the upper 147 yen range as the currency was sold after the yield on the 10-year Japanese government bond rose.
On the stock market, a wide range of issues were sold after the Nikkei index and Topix ended at their highest level since February 1990 on Monday. The Nikkei benchmark hit an intraday 34-year high the previous day, before ending slightly lower.
"Investors also adopted a cautious attitude after the Bank of Japan Governor (Kazuo) Ueda seemed to signal a step toward an end to negative interest rates during the press conference yesterday," said Shingo Ide, chief equity strategist at the NLI Research Institute.
The BOJ maintained its ultraeasy monetary policy at its two-day policy meeting ended Tuesday, while the governor said it is becoming more likely the central bank's inflation target will be reached and its negative interest rate policy will end when that goal is considered to be within reach.
