Tokyo - Tokyo stocks fell on Tuesday morning with exporters hit as the yen jumped on US and European political uncertainty.
The Japanese currency, seen as a safe haven by investors in times of instability, firmed on questions over US policy implementation under President Donald Trump and concerns about the upcoming French election.
"The market's tone has been one of risk-off, as political fallout in both Europe and the United States is weighing on investor resolve, imposing an unpalatable risk on investor sentiment," said Stephen Innes, senior trader at forex firm OANDA.
"Investors are now seeking shelter in safe havens to weather the mounting risk," he said in a commentary.
A strong yen is negative for Japanese exporters as it erodes their repatriated income.
The dollar was quoted at ¥111.78 on Tuesday, slightly up from ¥111.70 in New York on Monday afternoon but well below ¥112.49 seen in Asia earlier.
In Tokyo stock trading, the benchmark Nikkei 225 index fell 85.23 points, to 18 891.48 by the break, while the Topix index of all first-section issues was down 6.53 points, at 1,513.89.
In France, the right-wing presidential candidate Francois Fillon has been embroiled in a scandal over payments to his wife and his troubles could boost far-right leader Marine Le Pen, whose campaign echoes many themes that propelled Donald Trump to the White House.
Le Pen's list of 144 "commitments" to the nation includes pulling France out of the eurozone.
"The French election is one of the biggest risks of this year, and if Le Pen wins within this climate of increasing anti-globalism, there's the risk that the European Union will collapse," Toshihiko Matsuno, a senior strategist at SMBC Friend Securities, told Bloomberg News.
Toyota fell 2.64% to ¥6 321 as the auto giant's upgrades in full-year outlooks fell short of market expectations.
Suzuki, which announced it would begin concrete discussions with Toyota for a proposed business partnership, sank 1.85% to ¥4 393 after leaving outlooks unchanged with no upgrades.
Takata climbed 6.88% to ¥466 after the previous day's 18.65% plunge that stemmed from fears for the future of the airbag maker at the centre of the biggest-ever auto safety recall.
Mitsubishi UFJ Financial fell 0.34% to ¥752.1, while Nintendo lost 1.91% to ¥23 280.
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