Japan's Nikkei index closed lower on Wednesday, April 10, as investors booked profits after two straight sessions of gains, while caution prevailed ahead of key U.S. inflation data.
The Nikkei fell 0.48 percent to 39,581.81 points after rising about 1 percent in each of the previous two sessions. The benchmark index fell about 2 percent last Friday, its biggest decline in about a month.
The Nikkei has risen in the past two days, encouraging investors to sell stocks, said Naoki Fujiwara of Shinkin Asset Management.
The market was also cautious ahead of US CPI data for March, which could provide insight into the timing of a US interest rate cut.
Investors are awaiting US data due later today for clues on the Fed's next move on interest rates.
The data is expected to show inflation rising to 3.4% year-on-year from 3.2% in February.
Fast Retailing, owner of clothing brand Uniqlo, fell 1.11%, making the Nikkei the biggest loser.
Chip testing equipment maker Advantest Inc. also fell 1.03%.
Tokyo Electron, a chip-making equipment maker, bucked the trend, rising 0.77 percent, while Shin-Etsu Chemical, a silicon chip maker, added 0.8 percent.
IHI Heavy Industries Group Co Ltd plunged 5.44%, making it the worst performer on the Nikkei.
While Tokyo Gas rose 5.12% to be the biggest gainer on the Nikkei.
The broader Topix index lost 0.43% to 2,742.79, with Toyota Motor Corp falling 0.95%, the biggest loser.
