Tokyo stocks drop for 3rd day amid Japan political uncertainty
The 225-issue Nikkei Stock Average fell 323.72 points, or 0.79 percent, from Monday at 40,674.55. The broader Topix index finished 22.09 points, or 0.75 percent, lower at 2,908.64.
On the top-tier Prime Market, decliners were led by transportation equipment, machinery and securities house issues.
The U.S. dollar fluctuated in the 148 yen range in Tokyo without clear direction, amid a lack of new incentives.
The stock market continued to face selling pressure by investors locking in gains after last week's surge on a Japan-U.S. trade agreement, with auto shares and heavyweight semiconductor-related issues notably falling.
"Stocks fell as investors regained calmness about the trade deal that resulted in a 15 percent U.S. tariff (on Japanese imports) and political situations remaining very unclear" in Japan, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.
Prime Minister Shigeru Ishiba insists on remaining in office despite calls within his party for him to step down following the ruling coalition's major setback in the latest national election.
Investors were also cautious before major economic events later this week, including policy meetings of the U.S. and Japanese central banks as well as releases of earnings results and U.S. jobs data, brokers said.
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