Tokyo stocks fell moderately on Wednesday on caution ahead of the release of key U.S. inflation data later in the day.
The 225-issue Nikkei Stock Average ended down 191.32 points, or 0.48 percent, from Tuesday at 39,581.81. The broader Topix index finished 11.90 points, or 0.43 percent, lower at 2,742.79.
On the top-tier Prime Market, decliners were led by insurance, pharmaceutical and consumer credit issues.
The U.S. dollar moved little in the upper 151 yen range as investors refrained from active trading ahead of the U.S. consumer price index data for March, dealers said.
Stocks were in negative territory throughout the day, as market participants locked in gains after the Nikkei index rallied over 700 points in the two previous trading days.
The market was pressured by caution over the U.S. inflation data, as its outcome could lead the Federal Reserve to keep interest rates elevated beyond June, the timing at which the central bank is widely expected to start reducing interest rates, or reduce the number of possible rate cuts this year, analysts said.
"Market participants were concerned that the CPI could be stronger-than-expected amid a recent upward trend in energy prices," said Koichi Fujishiro, senior economist at Dai-ichi Life Research Institute.
Meanwhile, the market's downside was supported by buying of chip-related issues as they tracked overnight advances on a key U.S. semiconductor index, analysts said.
