TOKYO: Japanese shares ended lower on Friday, weighed down by uncertainties about outlook of domestic firms, while gains in technology stocks tracking an overnight Nasdaq rally limited losses.
The Nikkei share average dropped 0.61% to close at 29,611.57, after inching up 0.15% earlier in the session to track solid finish of US major indexes. The broader Topix lost 0.69% to 2,041.42.
For the week, Nikkei rose 2.49%, while Topix gained 2.01%, both posting a second straight weekly jump.
The S&P 500 and Nasdaq extended their streaks of record high closes to six sessions, as investors digested the Federal Reserve's decision to start reducing its monthly bond purchases.
"We had expected a series of upward revisions of corporate outlook toward the end of the year but it turned out we are seeing a mixture of good and bad outcome," said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.
"Investors are looking at the full-year results and beyond. Right now it's hard to buy manufactures, whose earnings might be affected by rising material costs and other factors."
Toyota Motor fell 1.36% as the automaker warned that the global semiconductor shortage still posed risks to its full-year production plans.
Toyota raised its profit outlook but the auto maker was helped only by favourable currency rates, which dimmed outlook of other players and related manufacturers, market participants said.
Leading declines on Nikkei, heavyweights air-conditioner maker Daikin Industries and medical equipment maker Terumo plunged 2.64% and 5.42%, respectively, after their outlook missed market consensus.
Mobile phone operator SoftBank lost 4.84%, as it posted a 2.5% drop in half-year net profit due to cuts in phone charges.
Technology heavyweights rose, with game maker Konami Holdings and phone company KDDI rising 4.45% and 0.08%, respectively.