TOKYO: Tokyo stocks opened 1.46 percent lower on Wednesday after US shares fell and the dollar dropped on concerns over a potential tapering of the Federal Reserve's huge stimulus package.
The benchmark Nikkei 225 index fell 229.46 points to 15,520.20 at the start.
"There is a sense of overheat in the market," said Hiroichi Nishi, general manager of equities at SMBC Nikko Securities.
"Profit-taking may be seen as both domestic and blue-chip exporters have been overbought on the back of recovering global economies," he added.
Profit-taking saw the dollar dip on Tuesday ahead of a series of figures this week that could provide clues as to when the Federal Reserve will reduce its stimulus.
The dollar fetched 102.45 yen early Wednesday against 102.48 yen in New York Tuesday afternoon. The latest rate was sharply down from 103.25 yen in Asia on Tuesday.
A stronger yen is negative for Japanese exporters as it erodes their competitiveness abroad and repatriated profits.
The euro bought $1.3590 and 139.11 yen compared with $1.3589 and 139.27 yen in US trade.
US stocks Tuesday fell for a second day in a row as speculation increased that the Fed will soon scale back its bond-buying programme.
The Dow Jones Industrial Average lost 0.59 percent to 15,914.62.
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