The Nikkei 225 Index slipped 0.1% to just below 39,400, while the broader Topix Index dropped 0.2% to 2,770 on Thursday, paring gains from the previous session.

The declines mirrored losses on Wall Street overnight, following the Federal Reserve's decision to pause its rate-cutting cycle and its acknowledgment that inflation remains "somewhat elevated."

Investor sentiment was also impacted by mixed earnings from major US tech companies, including Tesla, Meta Platforms, and Microsoft. Notable losses were seen in companies such as Sumitomo Mitsui (-1.3%), SoftBank Group (-1%), Keyence (-3.1%), Sony Group (-1.9%), and Fast Retailing (-0.3%).

However, Advantest surged 3.9% following strong quarterly results, while IHI Corp and Mitsubishi Heavy Industries saw gains of 3.8% and 2.8%, respectively, ahead of their upcoming earnings reports.

Source: Trading Economics