Japanese shares ended lower on Wednesday after the Bank of Japan held rates steady as expected, citing uncertainty over the impact of potential US tariffs on the export-driven economy.

The Nikkei 225 declined 0.25%, or 93.54 points, to close at 37,751.88.

While higher rice prices could lift inflation, concerns over global trade tensions cloud Japan's economic outlook, the BOJ said.

Markets are watching Governor Kazuo Ueda's briefing for signals on the next rate hike and how he plans to balance domestic inflation with external risks.

In economic news, Japan posted a trade surplus of 584.51 billion yen in February, reversing a 415.43 billion yen deficit a year earlier, as exports rose 11.4% to 9.191 trillion yen, led by gains in Asia.

Imports slipped 0.7% to 8.607 trillion yen, the Ministry of Finance said.

Total machinery orders climbed 9.8% in January from the previous month, though core private-sector orders fell 3.5%.

A Reuters Tankan poll showed business sentiment among manufacturers fell to minus 1 in March from plus 3 in February, the first negative reading since December, as US tariff concerns and China's slowdown weighed on outlooks.

The service-sector index fell to plus 25 from plus 30.

Japan's industrial output fell 1.1% in January from the previous month but rose 2.2% year-on-year, revised data from METI showed.

Shipments slipped 1%, while inventories rose 1.5%. Production capacity declined 0.3% month-on-month and 1.9% year-on-year, while the operating ratio increased 4.5% and 4.3%, respectively.

Among corporate moves, Makino Milling (TYO:6135) received letters of intent from multiple parties to acquire the company, following Nidec Corp.'s Dec. 27 tender offer proposal.

Makino is reviewing the offers and asked Nidec to delay its bid to at least May 9.

Toei (TYO:9605) raised its year-end dividend forecast to 12 yen per share, including a 6-yen special dividend, bringing the total annual payout to 18 yen. The previous forecast was 6 yen.

Perseus Proteomics (TYO:4882) completed a Phase I trial of its PPMX-T003 antibody in six polycythemia vera patients. The trial showed no safety issues and improved red blood cell markers.

Five patients avoided phlebotomy for 12 weeks; one withdrew for personal reasons.