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Japanese shares dipped further from a two-month high on Wednesday, tracking overnight losses on Wall Street on fears of a second wave of COVID-19 infections, while some profit taking also weighed on the market.

The benchmark Nikkei average fell 0.5% to 20,267.05, with cyclical sectors leading the declines.

The broader Topix pared most of the early losses and ended the session at 1,474.69, just 0.1% lower on the day.

Shiseido Co Ltd tumbled 4.2% after its net profit plunged by 95.8% in the January-March quarter and as the cosmetics maker withdrew full-year profit and dividend guidance, citing COVID-19 uncertainty.

Toyota Motor Corp, the biggest Japanese company by market value, lost 2.2% following the automaker's warning that its operating profit will slump almost 80% in the current financial year through March 2021.

Bucking the overall weakness, NEC Corp jumped 6.5% to a 2-1/2-month high after the electronics maker surprised investors by raising its annual dividend forecast.

About two-thirds of the 33 sector sub-indexes on the Tokyo exchange finished in negative territory.

Copyright Reuters, 2020

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