The Nikkei share average edged down 0.58 per cent to 30,292.19 from Tuesday’s high of 30,714.52, a peak since August 1990.
The broader Topix slipped 0.18 per cent to 1,961.49, a day after scaling its highest since June 1991.
“Investors are selling stocks for profit booking today. The market is taking a pause from a rising momentum,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
“Shares that were beaten down amid the pandemic are being bought as rising interest rates in the U.S. and Japan indicates an economic recovery. Rollouts of COVID-19 vaccines in Japan is another positive factor.”
Chip and electronics shares led losses in Nikkei, with TDK down 3.23 per cent, Yaskawa Electric losing 3.23 per cent and Tokyo Electron shedding 2.2 per cent.
The declines followed a drop overnight in U.S. technology stocks.
Bridgestone fell 4.13 per cent after the tire maker posted its first annual net loss in 69 years due to impairment and restructuring costs, following the pandemic.
Shares whose valuations had shot up after a recent rally also took a hit, with M3 falling 3.88 per cent and Keyence losing 1.09 per cent.
On the other hand, travel- and leisure-related shares did well after Japan launched its COVID-19 inoculation drive on Wednesday.
ANA Holdings jumped 4.19 per cent while Japan Airlines rose 4.21 per cent. Central Japan Railway, which runs bullet trains connecting Tokyo and Osaka, rose 2.52 per cent.
Oriental Land, the operator of Tokyo Disney Resort, rose 3.41 per cent.
Shipping firms Kawasaki Kisen jumped 5.69 per cent and Mitsui OSK Lines gained 4.45 per cent.
