Japan shares close lower, driven by US-China tension and a stronger yen

Japanese stocks closed lower on Tuesday as tensions escalated between Beijing and Washington ahead of a possible visit by US House Speaker Nancy Pelosi to Taiwan on Tuesday. At the same time, the yen’s rally against the dollar fueled a sell-off in exporters’ shares.

The Nikkei index fell 1.42 percent to 27,594.73 points, and the broader Topix index fell 1.77 percent to 1925.49 points.

Chip-making equipment maker Tokyo Electron fell 2 percent, the biggest drop on the Nikkei index. Air-conditioning maker Daikin Industries fell 3.04 percent, and robotics maker Fanuc fell 2.16 percent.

Toyota Motor shares fell 2.6 percent, the biggest drop on the Topix index. JSR shares also fell 18.57 percent by the daily minimum drop, after the semiconductor materials manufacturer cut its annual profit forecast.

And Hino Motors, the automaker, fell 9.86 percent.

On the other hand, sensor maker TDK rose 13.5 percent after the company announced a rise in its quarterly profit.

18 stocks rose on the Nikkei index, compared to a decline of 206.