Tokyo: The Nikkei index fell 1 percent on Wednesday, as investors took profits following the rise that pushed the Japanese index to a record level at the close in the previous session. The Nikkei dropped 1.06 percent to 51,961.98 points, while the broader Topix index also fell 0.77 percent to 3,511.34 points.

According to Qatar News Agency, the Nikkei had risen 4 percent in the first and second sessions of the year, reaching a record closing level on Tuesday. The Topix index for small-cap stocks gained 0.39 percent, with about 55 percent of shares on the main Tokyo Stock Exchange rising, while 41 percent declined, and 3 percent saw little change.

Shares of Toyota Motor and Honda Motor fell more than 2 percent each. In contrast, shares of Toyo Engineering, a company specializing in developing technology to extract rare earth elements from the sea, rose by nearly 20 percent, reaching the daily trading limit at JPY 4,285 on Wednesday.

Advantest, a chip testing equipment manufacturer, fell 4.4 percent, recording the largest loss on the Nikkei, while Fast Retailing, owner of the Uniqlo brand, dropped 2.74 percent. Meanwhile, Hisamitsu Pharmaceutical shares rose 19.23 percent to a daily high of JPY 6,200.