Japan's Nikkei average dropped 0.66 percent to 38,110.22 as the yen jumped on broadly weaker dollar, weighing on exporter stocks. The broader Topix index settled 0.87 percent lower at 2,661.41.
Decliners were led by transportation equipment, bank and rubber product issues. Department store operator Isetan Mitsukoshi Holdings slumped 6.5 percent and Takashimaya declined 1.3 percent.
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