"Stock markets are following currency movements because there are no big catalysts to be found"
- Yoshinori Nagano, a senior strategist in Tokyo at Daiwa Asset Management Co.
Japanese stocks closed lower for a second day on Tuesday after the yen strengthened.
The Nikkei 225 declined 0.63%, or 60.96, to 9,637.63. The broader Topix lost 0.66%, or 5.51, to 827.35.
"Stock markets are following currency movements because there are no big catalysts to be found," said Yoshinori Nagano, a senior strategist in Tokyo at Daiwa Asset Management Co., which oversees about $104 billion.
"I don't think the cut in China's target is bothering people in the market, but it's relatively negative for stocks related to public infrastructure as the nation is shifting away from investment toward consumption."
© Dukascopy Bank