The benchmark Nikkei 225 index fell 0.38 percent, or 109.75 points, to 28,608.49, while the broader Topix index slipped 0.23 percent, or 4.48 points, at 1,963.16.
"Some investors looked for bargains, but overall Asian markets have been rather soft. The Nikkei index lacked the energy to shoot into positive territory," the brokerage added.
The benchmark Nikkei 225 index inched down 0.06 percent or 18.16 points to end at 29,048.02, while the broader Topix index advanced 0.15 percent or 3.02 points to 1,965.67.
The benchmark Nikkei 225 index fell 1.30 percent, or 392.62 points, to 29,696.63, while the broader Topix index was down 1.47 percent, or 29.20 points, at 1,954.34.
The Nikkei index, which on Monday closed above the 30,000 mark for the first time in about two weeks, extended its gain in early trade after Wall Street shares rallied to another record finish.
Chip-testing equipment maker Advantest was up 2.66 percent at 8,480 yen and chip-making equipment manufacturer Tokyo Electron rallied 3.26 percent to 42,130 yen.
"The global economy in 2021 should move gradually toward normalisation... With excessive liquidity, the market's upward momentum should strengthen further," the brokerage said.
Japan has booked a trade surplus of 366.8 billion yen ($3.5 billion) in November, the fifth consecutive monthly surplus, according to data released by the finance ministry before the opening bell, which prompted little reaction from investors.
The Dow Jones Industrial Average added 0.2 percent at 30,046.37, while the broad-based S&P 500 declined 0.1 percent and the tech-rich Nasdaq Composite Index shed 0.3 percent.