Tokyo stocks fell Tuesday, with exporters hit as the yen jumped on US and European political uncertainty. The Japanese currency, seen as a safe haven in times of instability, firmed on questions over US policy implementation under President Donald Trump and concerns about the upcoming French election.
"The market's tone has been one of risk-off, as political fallout in both Europe and the United States is weighing on investor resolve, imposing an unpalatable risk on investor sentiment," said Stephen Innes, senior trader at forex firm OANDA.
"Investors are now seeking shelter in safe havens to weather the mounting risk," he said in a commentary.
A strong yen is negative for Japanese exporters as it erodes their repatriated income.
The dollar was quoted at 111.77 yen Tuesday afternoon, slightly up from 111.70 yen in New York Monday afternoon but well below 112.49 yen seen in Asia earlier.
In Tokyo stock trading, the benchmark Nikkei 225 index lost 0.35 percent, or 65.93 points, to end the day at 18,910.78. The Topix index of all first-section issues fell 0.28 percent, or 4.27 points, to finish at 1,516.15.
In France the right-wing presidential candidate Francois Fillon has been embroiled in a scandal over payments to his wife and his troubles could boost far-right leader Marine Le Pen, whose campaign echoes many themes that propelled Donald Trump to the White House.
Le Pen's list of 144 "commitments" to the nation includes pulling France out of the eurozone.
"The French election is one of the biggest risks of this year, and if Le Pen wins within this climate of increasing anti-globalism, there's the risk that the European Union will collapse," Toshihiko Matsuno, a senior strategist at SMBC Friend Securities, told Bloomberg News.
Toyota fell 2.26 percent to 6,346 yen as the auto giant's upgraded full-year outlook fell short of market expectations.
Suzuki, which announced it would begin concrete discussions with Toyota for a proposed business partnership, sank 1.69 percent to 4,400 yen after leaving outlooks unchanged with no upgrades.
Takata climbed 6.65 percent to 465 yen after the previous day's 18.65 percent plunge that stemmed from fears for the future of the airbag maker at the centre of the biggest-ever auto safety recall.
Mitsubishi UFJ Financial declined 0.46 percent to 751.2 yen, while Nintendo lost 2.12 percent to 23,230 yen.