TOKYO: Japanese shares snapped a three-session rally on Thursday, mainly led by declines in chip-related shares as investors booked profits, while electronics and media giant Sony jumped more than 9% on upbeat third-quarter earnings.

Nikkei share average edged down 0.42% at 28,523.06 by 0145 GMT, while the broader Topix fell 0.01% to 1871.04.

Chip-related shares led losses, with Advantest falling 4.75%, followed by Sumco and TDK losing 4.18% and 3.64%, respectively.

"Chip-related shares rose too much before the earnings season started but now all the good news are out," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

"Virus-beaten down transport shares are gaining but whether those shares could maintain the momentum is questionable as the pandemic is far from over."

Sony surged 9.45% and was the biggest gainer in Nikkei, after the company raised its full-year profit outlook.

Transport stocks continued their rallies, with Japan Airlines and Central Japan Railway gaining 3.15% and 1.49%, respectively.

Brokerages gained the most among the 33 sector sub-indexes on the Tokyo exchange, after Nomura Holdings reported strong earnings and jumped 5.24%. Daiwa Securities Group rose 3.7%.

Sea transport sector jumped 4.74%, after Kawasaki Kisen raised its outlook. Kawasaki Kisen surged 7.14%, while Nippon Yusen jumped 6.23%.