At closing bell, the 225-issue Nikkei Stock Average index declined 134.99 points, or 0.48%, to 28,027.84. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 11.34 points, or 0.57%, to 1,992.97.
Total 23 of 33 TSE sectors declined, with Electric Power & Gas, Metal Products, Transportation Equipment, Electric Appliances, Pulp & Paper, and Pharmaceutical issues being notable losers.
Unhappiness over China's strict Covid-19 restrictions has sparked a wave of nationwide protests not seen since pro-democracy rallies in 1989 were crushed, and security forces have since filled the streets of cities like Beijing and Shanghai.
The unrest erupted after months of mounting frustration over tough coronavirus restrictions, pointing to public division over a hardline stance that has slowed the world's second-biggest economy.
Among individual shares, Eisai stocks plunged almost 10% after the pharma company reported a second death potentially linked to its experimental drug for Alzheimer's disease developed with Biogen.
ECONOMIC NEWS: The unemployment rate in Japan came in at a seasonally adjusted 2.6% in October, unchanged from the September reading, the Ministry of Internal Affairs and Communications said on Tuesday.
The value of retail sales in Japan was up 4.3% on year at 13.082 trillion yen in October, following the upwardly revised 4.8% gain in September, the Ministry of Economy, Trade and Industry said on Tuesday. On a seasonally adjusted monthly basis, retail sales rose 0.2% - slowing from 1.5% in the previous month.
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CURRENCY NEWS: The dollar fetched 138.69 yen in Asian trade, against 138.87 yen in New York late Monday.
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