The Nikkei closed 2.67 per cent lower at 22,010.78, handing back the previous day’s modest gains, with overnight losses on Wall Street setting the tone early on. The index touched 21,993.07 in intraday trade, its lowest since Aug. 16.
The broader Topix ended the day down 2.63 per cent at 1,650.72, its lowest close since March 26, with all 33 of its subindexes in negative territory.
Chinese shares, which had soared the previous session in a boost to the Nikkei, also slipped on Tuesday and pushed down Japanese and other Asian markets.
“Shares are susceptible to falling amid a steady stream of concerning geopolitical headlines. The start to the domestic earnings season has also been marked by several notable downward revisions and this is also weighing on sentiment,” said Takashi Hiroki, chief strategist at Monex Securities.
Concerns over Italy’s budget plan and Brexit negotiations added to the general atmosphere of caution.
Lixil Group Corp fell 15.7 per cent after the manufacturer and distributor of building materials and plumbing equipment slashed its net profit forecast for the year through March 2019 to 1.5 billion yen ($13.31 million) from 50 billion yen.
Lixil revised down its profit outlook amid a drop in demand for new housing in the domestic market. Lixil also failed to gain US approval to sell its subsidiary to a Chinese firm and was unable to separate the subsidiary’s liability and losses from its financial reporting.
Hitachi Chemical Co dropped 8.6 per cent after the company reported that its April-September net profit declined by 2.1 per cent to 16.41 billion yen.
Kawasaki Heavy Industries shed 1.3 per cent, extending its decline following a drop of more than 9 per cent suffered the previous day after the industrial heavyweight slashed its forecasts for the current fiscal year.
Mitsubishi Heavy Industries retreated 2.6 per cent after public broadcaster NHK reported that the company is arranging 220 billion yen in financial support for its aircraft unit, which has struggled to deliver is first passenger jet.
The few gainers included CE Holdings Co, which surged 12.7 per cent after the medical system information provider revised up its operating profit outlook for the year through September 2018 to 526 million yen from 400 million yen. ($1 = 112.7300 yen)