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Japan's Nikkei share average pared early losses to end lower on Friday, pausing a rally ahead of the corporate earnings season, while the index posted its sixth consecutive month of gains as investors bought stocks on dips.
The Nikkei ended 0.14% lower at 33,189.04 after falling as much as 0.9% earlier in the session. For the week, the index posted a 1.24% gain, recovering from its first loss after 10 straight weeks of gains.
The broader Topix ended down 0.33% at 2,288.60.
"The boom for Japanese stocks has paused for now. The rally was led by expectations of better outlook for companies but investors are not yet sure whether this is the reality," said Jun Morita, general manager of the research department at Chibagin Asset Management.
"That does not mean the Nikkei has reached its peak. It could rise further next month if investors confirm strong corporate outlook as the earnings season kicks off."
The Nikkei hit a three-decade high earlier this month, driven by a boom in chip-related companies and inflows into trading houses after billionaire investor Warren Buffett said he was adding to investments in the sector.
But foreign investors, who led the rally, turned net sellers of Japanese equities for the first time last week after 12 straight weeks of buying.
Chip-making equipment maker Tokyo Electron lost 1.03% to drag the Nikkei down the most. Silicon wafer maker Shin-Etsu Chemical fell 0.4% and medical equipment maker Terumo slipped 1.49%.
Bucking the trend, Takashimaya surged 7.7% after the department store operator raised its annual operating profit outlook. Peer Isetan Mitsukoshi Holdings rose 2.27%.
Uniqlo brand owner Fast Retailing rose 1.58% to provide the biggest support to the Nikkei. Contact lens maker Hoya rose 1.1% and soy sauce maker Kikkoman advanced 1.02%. (Reporting by Junko Fujita; Editing by Rashmi Aich and Sonia Cheema)