Japanese shares plunged on Tuesday, breaking their winning streak, amid the sell-off on Wall Street on Monday as investors reassessed the outlook for US interest rates.
The benchmark Nikkei 225 closed lower by 2,565.58 points or 3.55% at 69,788.38 on Tuesday.
News reports indicate that investor sentiment was dampened by growing expectations that the US Federal Reserve could remain hawkish and that there were chances of rate hikes later this year.
As the yen continued to slip against the dollar, media reports said Japan's Finance Minister Satsuki Katayama held an online meeting with U.S. Treasury Secretary Scott Bessent on Monday to discuss global financial markets.
Under economic data, the seasonally adjusted S&P Global Flash Japan PMI Composite Output Index rose to 52.5, compared with the previous month's 51.1 reading.
The improvement was driven by a recovery in services activity, with the Services PMI growing to 51.8 in May from the neutral point of 50 in April, and an acceleration in manufacturing activity, with the manufacturing PMI jumping to 54.9 from 54.5.
On the corporate side, Sato (TYO:6287) will acquire all voting shares of flexible packaging manufacturer Hiranoya Bussan to make it a wholly-owned subsidiary, effective June 15, at an undisclosed price, according to a Tokyo bourse filing on Tuesday.
Also, Yamatane (TYO:9305) board on Tuesday approved the disposal of 183,119 treasury shares totaling 26.7 million yen under its restricted stock remuneration plan.