TOKYO: Tokyo stocks fell Tuesday morning as a pick up in the yen hurt exporters while Toshiba dropped on a report that it was set to warn its future may be in doubt.
US Fed Chair Janet Yellen's testimony to Congress later Tuesday was also in focus, while investors were taking a second look at upbeat weekend talks between US President Donald Trump and Prime Minister Shinzo Abe, analysts said.
"Everything appeared rosy after the summit, but investors realise key issues such as currency and trade were not really discussed in the meeting," said Daisuke Uno, chief market strategist at Sumitomo Mitsui Banking Corp.
"It is too early to decide that the issues with the United States will be all OK for Japan."
Abe's meeting with Trump went amicably with the US billionaire who dropping his previous harsh rhetoric towards Tokyo.
Trump had earlier accused Japan of devaluing the yen to boost exports, grouping it with other countries he says are taking "advantage" of the United States.
Tokyo's benchmark Nikkei 225 index edged 0.16 percent, or 31.33 points, lower to 19,427.82 by the break, while the Topix index of all first-section issues fell 0.12 percent, or 1.91 points, to 1,552.29.
In currency trading, the dollar weakened to 113.68 yen from 113.77 yen in New York.
Toshiba dropped as a report said the huge conglomerate may warn that its future is in jeopardy owing to huge losses in its nuclear power business.
The stock fell 2.04 percent to 244.7 yen by the break, but was down more than nine percent in afternoon trading after saying it was delaying the release of its earnings report.
Market heavyweight Fanuc, a factory robot maker, fell 1.10 percent to 22,455 yen, while mobile carrier SoftBank lost 0.30 percent to 8,633 yen.
Troubled airbag maker Takata rose 4.24 percent at 565 yen and Panasonic up 0.24 percent at 1,245.5 yen.
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