Struggling Japanese auto parts maker Takata, meanwhile, surged 16.47 percent to 707 yen after news it is close to settling a US criminal probe into an exploding airbag scandal. Takata could reach a final agreement with the US Department of Justice before President-elect Donald Trump assumes office January 20, two sources told AFP, confirming earlier reports. Officials want Takata to admit wrongdoing and pay a financial penalty that could exceed $1 billion, one source said.
Tokyo's benchmark Nikkei 225 index fell 1.32 percent, or 256.58 points, to end at 19,145.14. The broader Topix index of all first-section issues declined 1.20 percent, or 18.41 points, to 1,518.39. On Wall Street Wednesday, the Dow Jones retreated from its push towards the 20,000-point milestone, falling 0.6 percent to 19,833.68.
Shares of some banks fell more than one percent after stocks had won outsized gains in the rally seen since US election day. "A market riding on expectations toward a Trump presidency is coming to a close, and we're starting to focus on reality," Mitsushige Akino, an executive officer at Ichiyoshi Investment Management, told Bloomberg News.
The dollar, meanwhile, eased against the yen, trading at 116.43 yen in late afternoon trade, against 117.26 yen a day earlier in Tokyo. In other Tokyo trading, Toyota fell 1.89 percent to 6,838 yen, while Sony lost 1.16 percent to 3,299 yen. Mitsubishi UFJ Financial Group lost 2.19 percent to 718.4 yen.