Nikkei closes lower under pressure from profit taking wave

The Japanese Nikkei index ended the session on Wednesday with a decline amid tepid trading, as investors continued to sell shares to take profits after a rise witnessed last week.

The Nikkei index fell 0.26 percent to 33,321.22 points after opening with a decline of 0.49 percent and then rising during the session.

Investors began a profit-taking wave after the index reached its highest level in 33 years on November 20. But the index did not reach a close higher than the level it recorded on July 3, which was 33,753.33, which is the highest closing level in 33 years.

The broader Topix index fell 0.51 percent to 2,364.50 points, pressured by a decline in banking stocks. The banking index lost 2.54 percent, and shares of Mitsubishi Financial Group (UFJ) and Sumitomo Mitsui Financial Group witnessed a decline of 2.83 percent and 2.63 percent, respectively.

Fast Retailing shares, which owns the Uniqlo brand, erased its gains and ended the session down 0.61 percent. But Tokyo Electron chip manufacturing equipment shares rose 0.69 percent.