TOKYO: Tokyo shares ended 0.76 percent lower on Thursday as the Japanese earnings season winds down with profits largely buoyed by a slide in the yen.
The benchmark Nikkei 225 index slipped 108.87 points to 14,228.44, while the Topix index of all first-section shares fell 0.62 percent, or 7.43 points, to 1,184.73.
"There are some interesting market reactions to select earnings reports, but a summary impression is that profits are not growing -- at least not at the expected pace," said Okasan Securities strategist Hideyuki Ishiguro.
Investors are now awaiting US jobs and economic growth data, with the European Central Bank to hold a closely watched policy meeting later in the day.
"Domestically, we still await some signs that inflation is firming up which will eventually be a plus for equities," Kabu.com chief strategist Tatsunori Kawai told Dow Jones Newswires.
Japan has been plagued by years of deflation, a vicious cycle of falling prices, wages and output.
Uniqlo clothing chain operator Fast Retailing fell for the sixth straight session, ending 1.55 percent lower at 31,750 yen.
Toyota fell 1.25 percent to 6,270 yen despite the auto giant's upbeat earnings announcement.
Investors expected good results from the world's biggest automaker which said Wednesday its half-year net profit soared 82.5 percent while it raised its annual earnings forecast thanks to a weak yen and improving sales in North America.
Honda closed down 0.76 percent to 3,900 yen while Nissan rose 0.22 percent to 887 yen.
On currency markets, the dollar bought 98.62 yen, from 98.69 yen in New York on Wednesday. (AFP)