TOKYO: Japanese shares ended lower on Wednesday, weighed down by cyclicals, as a resurgence in COVID-19 cases cast doubts over prospects of economic rebound, while falling interest rates dragged on banking and insurer stocks.

The Nikkei share average slipped 0.44% to close at 29,620.99, while the broader Topix ended 0.33% lower at 1,952.18.

Shipping firms and textiles led declines on the main bourse, with clothing materials maker Toray Industries losing 3.42%.

Department store operator J.Front Retailing dropped 7.42% to become the biggest loser on the Nikkei after flagging a disappointing annual profit forecast.

Insurers fell, with Dai-ichi Life Holdings down 2.13% and T&D Holdings losing 3.89%.

Mega banks also slipped, with Mitsubishi UFJ Financial Group losing 0.46% and Sumitomo Mitsui Financial Group dipping 0.82.