The Nikkei stock index snapped a three-day winning streak Thursday as investors locked in gains after sentiment was dampened by the U.S. Federal Reserve signaling interest rate cuts were not on the immediate horizon.
The 225-issue Nikkei Stock Average ended down 275.25 points, or 0.76 percent, from Wednesday at 36,011.46. The broader Topix index finished 17.06 points, or 0.67 percent, lower at 2,534.04.
On the top-tier Prime Market, decliners were led by insurance, rubber product and machinery shares.
The U.S. dollar remained weak in the upper 146 yen zone in Tokyo after the Fed hinted there would be no further interest rate hikes following its policy meeting Wednesday.
Stocks remained in negative territory throughout the day, with the Fed's remarks on delaying the anticipated rate cuts prompting selling after Tokyo stocks hit 34-year highs recently, analysts said.
"There appears to be some (short-term) correction happening since both U.S. and Japanese stocks have rallied recently," said Makoto Sengoku, senior equity market analyst at the Tokai Tokyo Research Institute.
The market was also dragged down by a stronger yen, which weighs on automakers and other exporters, while investors were taking a cautious stance ahead of upcoming earnings announcements in both Japan and the United States, Sengoku said.
