TOKYO: Tokyo shares gave up gains and closed lower on profit-taking on Wednesday, even as US stocks advanced on upbeat retail data.

The benchmark Nikkei 225 index, which opened comfortably in the black, slipped 0.40 percent, or 119.79 points, to end at 29,688.33, while the broader Topix index lost 0.60 percent, or 12.49 points, to 2,038.34.

"Following gains in the three major US indexes, the Nikkei index opened higher. But as it approached the 30,000 level, it fell on profit-taking," Okasan Online Securities said.

Investor sentiment has recently been bolstered by a solid corporate earnings season, and Edward Moya, OANDA senior market analyst for the Americas, said gains could be on the way.

"All signs are pointing to a very strong holiday season for retailers, and that should help keep sending stocks higher," he said.

Shortly before the opening bell, the Japanese government said the world's third-largest economy logged a year-on-year trade deficit in October for the third straight month.

Imports grew 26.7 percent for the ninth straight monthly gain, overwhelming a 9.4 percent growth in exports.

Among Tokyo shares, energy firms rose despite the Nikkei's fall, on reports that the government is planning subsidies for oil refiners to counter a rise in oil prices.

Energy developer INPEX advanced 1.92 percent to 1,004 yen, Idemitsu Kosan rose 1.15 percent to 3,070 yen but top refiner ENEOS Holdings dipped 0.46 percent to 448.2 yen.

Semiconductor shares added to recent gains. Tokyo Electron jumped 3.30 percent to 60,950 yen. Advantest rose 3.22 percent to 10,550 yen.

Tech investor SoftBank Group gained 0.26 percent to 7,132 yen while Uniqlo operator Fast Retailing tumbled 1.25 percent to 74,990 yen.

The dollar stood at 114.86 yen in Asian trade against 114.80 yen in New York.