The BOJ Tankan improved, but the Nikkei Average fell back. Profit-taking following the previous day's sharp rise came to the fore and pushed the market lower.
The Nikkei Average fell back, down 0.91%, while TOPIX declined 1.03%, as profit-taking prevailed in reaction to the sharp rise.
In the BOJ Tankan, the business conditions index for large manufacturers improved to 24, while the outlook also recovered to 21, showing resilient business sentiment.
Improving business sentiment and a share price correction unfolded at the same time, creating a situation in which short-term supply and demand and earnings strength are likely to pull export-related and economically sensitive stocks in opposite directions.