TOKYO: Japanese shares inched lower on Tuesday as a slew of corporate earnings failed to meet investors’ high expectations for strong profit recovery and as the country struggles with containing the COVID-19 pandemic.

The Nikkei share average fell 0.46% to 28,991.89, while the broader Topix shed 0.76% to 1,903.55. The market did not react to the Bank of Japan’s widely-expected decision of keeping policy unchanged.

Earnings have proved to be a drag on the market after the Nikkei had rallied to a three-decade high earlier this year on hopes of economic normalisation in the financial year that began in April.

Dai-ichi Sankyo fell 3.5% after the drugmaker gave a lower-than-expected forecast for the current year to March, while Hulic lost 4.4% after the property developer missed expectations.

Bucking the trend, NEC Networks & Systems gained 4.8% on upbeat earnings.

Renewable energy firm Tess Holdings jumped 18.7% in its debut and closed 21.3% above the IPO price, becoming the third most actively traded stock on the entire exchange.

Even companies with relatively strong earnings and positive surprises were not spared from sell-off, with camera and medical equipment maker Canon failing to keep earlier gains.