Japan's Nikkei share average fell on Tuesday as investors weighed when the Bank of Japan might tighten monetary policy further, while chip-related shares retreated after last week's gains.
The Nikkei fell 0.11% to 38,855.37 points at the close, despite a balance between losing and gaining stocks, with 120 stocks rising, 101 falling and four stable.
The broader Topix index fell 0.08%, with an index of fast-growing companies falling 0.37% and value stocks gaining 0.50%.
The Bank of Japan is scheduled to hold its next monetary policy meeting on June 13-14. Investors are concerned that the meeting could end with a tightening of monetary policy after the Japanese currency's decline prompted officials including Governor Kazuo Ueda to take a more hawkish stance.
Bank shares continued to rise as prospects of higher interest rates boosted profits from lending and investment activities. The Topix banking index rose 1.47 percent to its highest level since December 2007.
Utility stocks also rose, led by Furukawa Electric, which jumped more than 9 percent, and Kansai Electric, which rose 5.50 percent.
On the other hand, chip stocks fell after rising following Nvidia's earnings announcement last week.
Chip testing equipment maker Lasertech Co. was the biggest decliner in both points and percentage terms on the Nikkei, falling 3.19%.
Shares of chip testing equipment maker Advantest, which counts Nvidia as a customer, also fell 0.92 percent.
