Japan's Nikkei slips from record peak on concerns over BOJ policy, stronger yen
The Nikkei fell 1.3 per cent to 42,764.04 as of 0137 GMT.
The index crossed the key 43,000 metric for the first time on Wednesday, marking six consecutive sessions of gains. That took its winning run to 9 per cent since the drop on August 4.
"Investors sold stocks as they locked in profits on growing concerns about the market overheating," said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
"Also, the market became cautious that the Bank of Japan may raise interest rates soon after (US Treasury Secretary Scott) Bessent interfered with Japan's central bank's policy," he said.
In an interview with Bloomberg Television, Bessent said the BOJ is going to hike interest rates as it is "behind the curve" in handling monetary policy.
The comments came as bets that the Federal Reserve will resume rate cuts next month sent the US dollar to a three-week low.
A stronger yen typically weighs on exporter shares by reducing the value of overseas earnings when converted back into Japanese currency.
The broader Topix lost 1 per cent to 3,060.33 and was set to snap a six-session winning streak.
Shares of chip-testing equipment maker Advantest lost 0.3 per cent and chip-making equipment maker Tokyo Electron fell 1.1 per cent.
Automakers declined, with Toyota Motor and Honda Motor losing 1.77 per cent and 0.55 per cent, respectively.
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