Financial firms and insurers declined after a retreat in long-term US Treasury yields dampened the outlook for returns on their portfolios.
Eisai Co, however, surged 16.26 per cent, rising by the daily limit for a second straight session after its Alzheimer’s drug received a nod from US regulators on Monday.
The Nikkei share average ended 0.35 per cent lower at 28,860.80, while the broader Topix was down 0.28 per cent at 1,957.14.
“Japanese investors want to see the US CPI number tomorrow, and if it’s not faster than expected, that should come as a relief to markets and could very well result in a rally,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
Right now though, “there’s a strong wait-and-see attitude overall in markets,” he said, adding that investors booked profits and squared positions ahead of the data.
The Topix’s sea transport subsector was the biggest decliner, sliding 3.33 per cent, following its surge to the highest in more than a decade. Kawasaki Kisen led declines on the Nikkei with a 4.54 per cent tumble, while Mitsui OSK Lines lost 3.59 per cent.
Semiconductor firm Lasertec dropped 3.86 per cent, declining for a third day after climbing to a record peak.
Air transport was the best performing subsector, rising 3.26 per cent, followed by a 3.11 per cent jump for real estate , as Japan’s accelerating coronavirus vaccination programme buoyed the outlook for people to return to offices and start travelling by airplane again.
Pharmaceutical companies rose 1.18 per cent.
After Eisai, Sumitomo Realty and Development Co was the best performer on the Nikkei, with a 7.55 per cent rally. Mitsubishi Estate and Tokyo Tatemono followed suit, rising 4.05 per cent and 3.75 per cent, respectively. Airline ANA Holdings added 3.38 per cent.
