The Nikkei 225 shed 0.51%, or 44.89 points, to 8,831.93, while the broader Topix lost 0.23%, or 1.76, to 760.69.
Japan's Cabinet Office is to announce change in month-on-month core machinery orders on Thursday. Orders rose 14.8 per cent in November, after declining 6.9 per cent in October.