Japanese shares slip

Japan's Nikkei share average snapped a four-day winning streak on Thursday, as investors were reluctant to chase markets after the benchmark hit a 2-1/2-month high, raising concerns that stocks were potentially overvalued.

The Nikkei share average closed 0.21% lower at 20,552.31. Earlier in the session, the index rose to as high as 20,734.91, its strongest level since March 6. The broader Topix lost 0.23% to 1,491.21.

Although the market has rallied on hopes of a quick economic recovery following countries' move to ease coronavirus restrictions, investors have noted the market's valuations are getting stretched.

The Nikkei has rallied 8.6% so far this quarter after suffering a 20% loss in the previous quarter on worries about severe economic damages from the COVID-19 pandemic.

The Topix is traded at 14 times its expected earnings, sharply higher than the trough of 10.6 touched in March and near last year's peak of 14.4.

The turnover of the Tokyo Stock Exchange's main board has fallen below 2 trillion yen to the lowest level in almost a month, another sign of a lack in strong convictions among investors to chase the market higher.

Railway operator Tokyu Corp, Keio, East Japan Railway all lost about 2.4% each, while Central Japan Railway shed 1.6%. Cosmetic maker Shiseido slumps 1.8%.

The index of Mothers, a start-up market in the Tokyo Stock Exchange, climbed 1.9% to a one-year high, with Anges, which is also seeking to develop a coronavirus vaccine, rising 12%.

Elsewhere, Taiheiyo Cement gained 12.8% and Sompo Holdings rose 7.1% following their share buyback announcements.