Japan's Nikkei share average fell on Tuesday as traders booked profits after a rally in recent days, while shares of major automakers fell after Japan's transport ministry found irregularities in applications for certification of certain models.
Toyota Motor Corp. fell 1.26% and Honda Motor Co. fell 2.63%.
The Nikkei average fell 0.22 percent to 38,837.46, after rising to touch 39,000 on Monday. The broader Topix index fell 0.39 percent to 2,787.02.
Japanese stocks received limited support from Wall Street, after the S&P 500 and Nasdaq rose in a volatile session overnight, while the Dow Jones fell.
The Nikkei index hit an all-time high of 41,087.75 on March 22 but retreated the following month. The benchmark index touched the 39,000 level in May and again on Monday, but has failed to hold that range.
Although the dollar's move against the yen is largely range-bound at the moment, the yen is trading at its lowest level in 34 years, which has reinforced expectations that the Bank of Japan will raise interest rates sooner this year, perhaps by July.
The Nikkei index has risen 16% so far this year, and analysts expect it to reach 40,750 points by the end of this year.
In terms of stocks, the decline in heavyweights weighed on the general index, as Fast Retailing, owner of the Uniqlo clothing brand, lost 1.4%, and Schuftbank Group, which invests in start-ups specializing in artificial intelligence, fell 1%.
