Japanese stocks closed lower on Wednesday, with a drop in U.S. shares and a weaker dollar against the yen prompting investors to take a breather from the market's recent rally.
Japan Tobacco Inc. and Mizuho Financial Group Inc. led declines after rating downgrades, but chip stocks such as Advantest Corp. gained ground after tech bellwether Intel Corp. posted record quarterly sales.
The Nikkei average dropped 0.75 percent or 86.60 points to close at 11,453.39. The broader TOPIX index slid 0.81 percent to 1,147.89.