"It's difficult for investors to be optimistic enough to test shares higher solely on a weaker yen since there is uncertainty about corporate profits with the (Fukushima) nuclear power plant problems likely to drag on for some time," Yoshii said. Meanwhile, investors shrugged off an updated Bank of Japan Tankan survey, which took in responses after the earthquake and showed local firms were more pessimistic about business conditions in the coming three months.
"The Tankan result is still not fully reflective of the post-quake conditions," said Okasan Securities strategist Hideyuki Ishiguro. Canon rose 1.37 percent to 3,700 yen and Advantest rose 2.13 percent to 1,533. Tokyo Electric Power, the operator of the stricken Fukushima Daiichi nuclear power plant, fell 1.34 percent to 443.