The Japanese benchmark Nikkei 225 slipped 326 points or 0.85 percent to close at 38,026.17. The day's trading range was between 38,374.69 and 37,945.21. Anxiety ahead of the CPI update weighed on sentiment.
Tokyo Gas extended gains with a surge of close to 5 percent. Software business M3 followed with gains of 4.4 percent. Taiheiyo Cement Corp, Yamato Holdings and Ube Industries, all gained more than 3 percent.
IHI Corp lost close to 4 percent. Sumitomo Realty and Development Co, East Japan Railway Co, Aeon and Mitsubishi Heavy Industries, all declined more than 3 percent.
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