TOKYO: Japan's Nikkei share average slipped on Thursday as investors turned cautious ahead of key central bank meetings next week, although strong gains for airlines limited losses with Omicron fears continuing to recede.
The Nikkei 225 declined 0.15% to 28,818.53 as of the lunch break, but had earlier touched a nearly two-week intraday high of 28,908.29.
The US Federal Reserve headlines a string of central bank policy decisions next week, which also includes the Bank of Japan and European Central Bank.
"Investors seem to want to take time to judge the direction of financial markets with so many key central banks meetings next week, so they are adopting a wait-and-see approach," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
"The 200-day moving average is putting a tight lid on gains."
The 200-day moving average provided stiff resistance at 28,895.39, as investors took a breather following a more than 4% rally from last Thursday's close.
The broader Topix sank 0.33%, with metal products , textiles and machinery stocks leading declines.
Automakers also took a hit, with Nissan off 1.79%, and Honda down 0.83%.
The Topix Growth Index lost 0.18%, compared with a 0.49% decline for the Topix Value Index.
Airlines, meanwhile, outperformed on hopes that the Omicron coronavirus variant will not significantly disrupt economic reopenings.
The sector's 1.71% gain outpaced peers by a big margin, with ANA Holdings gaining 1.46% and Japan Airlines rallying 2.01%.
Pfizer and partner BioNTech said on Wednesday their three-shot course of the vaccine was able to neutralize the new variant in a laboratory test, and they could deliver an upgraded vaccine in March 2022 if needed.
SoftBank Group gained 1.64%, the best performer on the Nikkei by index points.
Internet retailer Rakuten Group jumped 1.82% and sauce-maker Kikkoman rallied 2.05%.
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