Japan's Nikkei 225 share average drifted lower on Tuesday, marking the end of an eight-session winning streak that had propelled the benchmark to new record highs.
Trading remained choppy as market participants took a breather after the sustained advance, signaling a potential shift in momentum for the world's second-largest equity market.
The pullback reflects a broader rotation within the Japanese equity complex.
Investors are moving capital away from traditional value plays and into growth stocks, particularly those linked to the artificial intelligence boom.
This shift suggests that the initial broad-based rally is maturing, with traders now hunting for specific AI darlings rather than buying the index indiscriminately.
With the easy money made, the market faces a liquidity test.