Tokyo shares opened lower on Tuesday following modest losses on Wall Street, where petroleum-linked shares retreated.
The benchmark Nikkei 225 index fell 0.62 per cent, or 174.40 points, to 27,818.95 at the open, while the broader Topix index dropped 0.64 per cent, or 12.55 points, to 1,947.56.
"Tokyo shares will fall... after the three major US indexes dropped," Mizuho Securities said. "The market is also likely to be weighed down by a stronger yen and profit-taking."
The dollar fetched 131.32 yen in early Asian trade, down from 131.61 in New York on Monday and the 136-yen level seen late last month.
On Wall Street, the Dow Jones Industrial Average ended down 0.1 per cent while the broad-based S&P 500 shed 0.3 per cent.
The tech-rich Nasdaq Composite Index dropped 0.2 per cent.
In Tokyo trading, automakers were lower, with Toyota tumbling 1.53 per cent to 2,178 yen, Honda dropping 0.97 per cent to 3,442 yen and Nissan falling 0.77 per cent to 515 yen.
ANA Holdings climbed 0.31 per cent to 2,540 yen after it posted a quarterly net profit for the first time since the pandemic began.
Its rival Japan Airlines fell 0.75 per cent to 2,351 yen. It logged a net loss of 19.56 billion yen for April-June.
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