Tokyo stocks snapped a three-day winning streak Wednesday as investors locked in gains after the Nikkei index's recent all-time highs, with caution also taking hold ahead of U.S. economic data.
The 225-issue Nikkei Stock Average ended down 31.49 points, or 0.08 percent, from Tuesday at 39,208.03. The broader Topix index finished 3.51 points, or 0.13 percent, lower at 2,674.95.
On the top-tier Prime Market, decliners were led by miscellaneous product, marine transportation and rubber product shares.
The U.S. dollar traded in a narrow range around the mid-150 yen zone as a wait-and-see mood prevailed ahead of U.S. personal consumption expenditure data for January due out Thursday.
Stocks were in a continuous tug-of-war throughout the day between selling and buying on continued bullish sentiment toward Japanese equities, which have helped propel the Nikkei's three-day streak of record-high closes.
But stocks eventually succumbed to downward pressure amid a lack of fresh catalysts and caution ahead of the U.S. inflation-related data, analysts said.
"Market interest appears to be shifting toward global financial policy and economic trends including in the United States following Nvidia Corp.'s earnings report" last week, said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.
While the U.S. chip giant's positive earnings and outlook "provided reassurance to the market and caused stocks to surge, another catalyst will likely be necessary to push things up to the next level," he said, adding that the Nikkei is likely to consolidate around the 39,000 mark in the meantime amid persistent optimism.
