Japanese shares retreated from a 30-year peak on Friday, as investors refrained from placing big bets ahead of the corporate earnings season while some locked in profit after the recent rally in global equities.
Nikkei share average edged down 0.33% to 28,663.27 as of 0140GMT, while the broader Topix eased 0.23% to 1,856.35. The index closed at a 30-year high on Thursday on investor optimism that new US administration's massive stimulus package will bolster growth.
"Today's decline is mainly due to profit-taking after US stocks touched new highs," said Hideyuki Ishiguro, senior strategist, Daiwa Securities.
"Investors are also holding off from buying ahead of earnings reports next week."
Wall Street peaked overnight, with both the S&P 500 and Nasdaq Composite closing at record highs, pushed upward by continued optimism about economic stimulus to counteract the Covid-19 pandemic promised by newly inaugurated US President Joe Biden.
Ad agency Dentsu Group fell 2.97%, following a jump of more than 5% on Thursday, after a report by the Times that the Japanese government has privately concluded the Tokyo Olympics to be cancelled because of the coronavirus pandemic. Hakuhodo DY Holdings fell 2.38%. Nippon Steel fell 3.07% after announcing plans to boost its stake in Tokyo Rope in a public tender offer.
Tokyo Rope is untraded with glut of bids and looks set to rise 28%, its limit for the day.
Shiseido jumped 3.99%, becoming the largest gainer in the index, after the cosmetic firm said it was in talks to sell its shampoo and skincare business to private equity CVC Capital Partners.
Kao rose 1.04%.
Chip-related shares rose, with Nikon rising 3.27% and Sharp jumping 3.9%.