Nikkei Stock Average closed down 62.08 points, or 0.7%, to 8988.39 following the 1.4% rise on Friday. End of the session selling pressure pushed the index closed at its intraday lows.
The Topix index of all First Section of Tokyo Stock Exchange also fell 7.37 points, or 1.0%, to 764.06, with 26 of 33 subindexes ended in negative territory.
The main index begins with a negative refractive players respond to the book profits after strong gains following two agreements in Europe on a plan to deal with the debt crisis in the region last week.
Shares jumped into positive territory mid-morning, however, the yen weakened as a sudden and sharp currency market intervention by the finance ministry.
Prime Minister of Japan Yoshihiko Noda said that the government intervene to avert damage to the export economy of the yen's strength.
Takuji Okubo, chief Japan economist at Societe Generale Corporate & Investment Banking, commented that the rules of Japanese official intervention in the yen made to withstand the strength of the yen, but not to weaken the yen.
"The conditions in which they intervened at this time according to the rules of a perfect rule of conduct also states that the yen should not weaken too much because of the intervention."
He pointed out that the dollar, which rose from the mid-level mid-Y79 Y75 until the close of trading on the stock market at 0600 GMT.
Meanwhile, the euro also rose sharply, breaking the mark Y111.
Shares of major Japanese exporters rose by Canon, Nikon, Kyocera and other currency-sensitive stocks rose sharply. But the advantage did not last long due to profit taking soon enter each of the three successful dututup higher on the day, closing up 1.0% to Y3, 600, up 1.8% to Y1, 789, and up 0.9 % at Y7, 010, respectively.
But stocks like Honda Motor and Fanuc down. The pair ended down 3.7% at Y2, 406 and down 1.1% at Y12, 930. Honda shares may also have been influenced by a Nikkei report that flooding might force Thailand to shut down a key plant for six months.
Tokyo Electron is among a number of companies that will report results after the market close of business Friday. The company said that net income for the second quarter fell 46% from a year earlier. Some analysts say the numbers as expected. The company also revised its outlook for full year net profit of Y34 billion to Y40 billion.
Other companies reacted negatively to the business results delivered Friday to Seiko Epson, which ended down 1.0% to Y1, 054 after posting second-quarter operating profit of Y3.1 billion, slightly below its guidance of Y3.4 billion.
Important reporting company during trading hours, including Fujifilm Holdings, which closed down 2.3% at Y1, 950 after saying sales and earnings for the fiscal first half ended September 30, down from the previous year due to strength of the yen and higher raw material costs.
Drugmaker Daiichi Sankyo also lost 3.5% to Y1, 536 after saying that net income for the three months through September declined 39% from a year earlier. It also lowers full-year earnings outlook for the yen and the decline in unit sales in India, Ranbaxy Laboratories.
Konica Minolta Holdings stock up 4.1% at Y580 after a quarter better than expected second solid. The company cuts full-year operating profit target to Y40 billion from Y42 billion.
December Nikkei 225 futures closed down 90 points, or 1.0%, in 8960 at the Osaka Securities Exchange.
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