Japan's Nikkei share average recouped most of its early losses to close flat on Tuesday, March 3, as investors bought back battered stocks after the index fell from a record high.
The index fell 0.03% to 40,097.63 points, paring most of its losses of 0.7% earlier in the session.
Investors bought back the falling stocks. Overall, the market was stable, the Nikkei fell today only because the stocks that had lifted the index declined, said Naoki Fujiwara, senior fund manager at Shinkin Asset Management.
After five straight weeks of gains, the Nikkei index broke the 40,000-point level for the first time on Monday and is up about 20% since the start of the year.
Chip testing equipment maker Advantest fell 2.64% and was the biggest drag on the Nikkei, while Tokyo Electron reversed course to close 0.41% higher, becoming the index's biggest supporter.
The three major US indices closed lower overnight as investors awaited economic data and Federal Reserve Chairman Jerome Powell's testimony before Congress.
The broader Topix index trimmed early losses to close 0.5 percent higher at 2,719.93.
Obayashi shares rose 18% after the general contractor raised its dividend forecast, while the construction sector rose 2.96% to become the best performer among the Tokyo Stock Exchange's 33 sector sub-indexes.
Fast Retailing, owner of clothing brand Uniqlo, rose 0.25% after saying its current-store sales in February rose 7.2% from a year earlier.
Of the 225 components of the Nikkei index, 124 rose, 99 declined and two were flat.
