The Nikkei's rally was driven by spillover from optimism over billionaire Warren Buffett eyeing increasing investments in the country. The broader Topix was down 0.23% to 2,036.17. "Investors still believe the Nikkei will rise further to cross the close in the previous session soon, but they wanted to take a pause today," said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Research Institute. "To prove that, undervalued stocks continued to rise."
Banking sector rose 0.37% and the steel sector gained 0.35%.
The railway sector rose 0.64%, with Keisei Electric Railway rising advancing 2.41% to become the best performer on the Nikkei.
Electronics component maker TDK lost 2.24% to become the biggest drag for the Nikkei. Chip-making equipment maker Tokyo Electron slipped 0.5% and silicon wafer maker Shin-Etsu Chemical lost 0.95%.
Luxury toilet maker Lixil fell 2.42% after cutting its annual profit forecast for the second time.
Of the 1,834 stocks on the TSE's prime market, 70% of them
fell, while 25% gained, with 6% being flat.
(Reporting by Junko Fujita; Editing by Rashmi Aich)
