Japanese stocks declined for the third consecutive day as investors remained cautious while central bank governors gathered in Jackson Hole, Wyoming. The Tokyo Stock Price Index fell 0.5% to 3,082.92, while the Nikkei 225 index dropped 0.4% to 42,733.87.

Automotive and pharmaceutical stocks led the decline, with transportation and construction sectors experiencing profit-taking. Meanwhile, some artificial intelligence-related stocks such as Advantest gained investor favor following yesterday's selloff.

Daiichi Sankyo was the biggest drag on the Tokyo Stock Price Index, falling 6.1%. Among the 1,679 stocks in the index, 397 advanced, 1,190 declined, and 92 remained unchanged.