The benchmark Nikkei 225 index was down 0.16 percent or 33.23 points at 20,586.96 in early trade, while the broader Topix index was down 0.14 percent or 2.09 points at 1,503.12.

"Selling pressure is seen dominating the Japanese market as China's commerce ministry announced it had lodged a complaint with the WTO" over fresh US tariffs, Toshiyuki Kanayama, senior market strategist at Monex, said in a commentary.

News that China and the US are facing difficulties in setting the next date for trade negotiations was also weighing on the market, he added.

The dollar fetched 106.26 yen in early Asian trade unchanged from the level in London.

The US market was closed on Monday for a holiday.

In Tokyo, trade lacked a clear direction, with mega-bank Mitsubishi UFJ Financial trading down 0.33 percent at 510.1 yen while its rival Sumitomo Mitsui Financial was up 0.08 percent at 3,478.

Market heavyweight and Uniqlo casual wear operator Fast Retailing was down 0.43 percent at 61,760 yen while Sony was up 1.02 percent at 6,098 yen and Toyota rose 0.51 percent to 6,988 yen.