Japanese shares closed lower for the second straight session after a choppy trading session on Wednesday, tracking the weak trade on Wall Street amid tech losses.
The benchmark Nikkei 225 closed lower by 613.41 points or 0.88% at 69,174.97 on Wednesday.
Driven by conflicting reports, investors are also cautious of the durability of the peace accord between Iran and the US.
Markets are also closely watching the movement of the yen, which is near a 40-year low, for a potential intervention to stabilize the currency.
On the corporate side, Toyota Motor (TYO:7203) will slash production outside Japan by about 100,000 units by around February 2027 as the de facto closure of the Strait of Hormuz affects demand overseas, Nikkei Asia reported Wednesday. It also plans to cut electric vehicle production for China.
Elsewhere, Marubeni (TYO:8002) has completed its share buyback program after repurchasing a total of 11,766,800 shares, according to a Wednesday filing on the Tokyo Stock Exchange.