Toyota climbed 3.48 percent to 8,413 yen after it announced plans to sell electric vehicles in the US market, seen as a key step in its shift towards EVs.
Market expectations are growing that the Fed will further ease monetary policy by expanding its bond buying programme, as US lawmakers struggle to agree on a fiscal stimulus package.
The benchmark Nikkei 225 index slipped 0.42 percent or 113.38 points to 26,704.56 in early trade, while the broader Topix index was down 0.19 percent or 3.39 points at 1,776.03.
Against a basket of currencies the dollar sat at 90.923, which is about half a percent above a two-and-a-half-year low it hit on Friday as short sellers piled in.