Tokyo - Tokyo's Nikkei 225 stock index closed down 0.32 percent on Wednesday, after the Bank of Japan wrapped up a meeting with policymakers trimming their inflation expectations but holding off fresh easing, despite the economy slipping into recession.
The benchmark Nikkei fell 55.31 points to 17 288.75, while the Topix index of all first-section shares closed almost flat, up 0.12 percent, or 1.66 points, to 1 396.54.
The Japanese market ticked up at the start as the yen weakened further against the dollar - a plus for exporters - but the Nikkei's rise was short lived.
Japan's central bank kept policy unchanged - after expanding its already huge stimulus package last month - as investors eye BoJ governor Haruhiko Kuroda's press briefing Wednesday.
In afternoon forex trade, the dollar fetched 117.37 yen against 116.83 yen in New York.
On Tuesday, Japanese Prime Minister Shinzo Abe called for early elections to seek a mandate for delaying next year's sales tax increase and to support his economic policies, after a levy rise in April helped push the world's number three economy into recession.
“Abe's actions were in line with market expectations, which had been building for several days,” said Eiji Kinouchi, chief technical strategist at Daiwa Securities.
“Historically, the market tends to rise between the time elections are declared and when the vote actually occurs,” he added.
Many analysts expect the election to take place around December 14.
In share trading, Takata dropped 7.41 percent to 1 099.0 yen as US safety regulators pushing for a nationwide recall of cars with defective airbags made by the embattled auto parts firm.
An earlier recall limited to several mostly southern US states needed to be expanded to the full country, said David Friedman, deputy administrator of the National Highway Traffic Safety Administration.
Mitsubishi UFJ firmed 0.16 percent to 671.0 yen after falling into negative territory in earlier trade.
Japan's biggest bank was fined $315 million (R3.5 billion) by a US banking regulator Tuesday for pressuring a consultant to water down a report on transactions with Iran, Sudan and other sanctioned countries.
(Dow Jones Newswires contributed to this article.) - Sapa-AFP