The strengthening yen "drags down shares as it has the greatest impact on manufacturers' earnings"
- Masaru Hamasaki, chief strategist at Toyota Asset Management Co.
Japanese stocks retreated on Tuesday.
The Nikkei 225 fell 0.59%, or 59.48 points, to 10,050.39, while the broader Topix lost 0.59%, or 5.03, to 851.02.
The strengthening yen "drags down shares as it has the greatest impact on manufacturers' earnings," said Masaru Hamasaki, chief strategist at Toyota Asset Management Co.
"Investors are beginning to doubt the BOJ will continue to ease monetary policy and are unsure it will promote reflation," Toyota Asset's Hamasaki said.
"From the beginning of this year, developers gained quite a lot, so I think investors are selling the shares to lock in profit," said Masahiro Mochizuki, a Tokyo-based analyst at Credit Suisse Group AG.
© Dukascopy Bank