The Nikkei index fell 0.71% to 28,949.88 points, to close below the 29,000 level for the first time since April 28, and the broader Topix index fell 0.21% to 2,071.21 points.
The Nikkei index had hit its highest level since January 2022 last Tuesday before the market closed due to a three-day holiday.
John Morita, managing director of research at Shibagen Asset Management, said: “The market fell today, partly due to yen strength, but investor sentiment was also weak as the Dow Jones ended Friday’s trading session lower than the start of the Japanese holiday.”
“There are also lingering concerns about the collapse of another bank in the United States,” he added.
The yen rose against the dollar last week after the US Federal Reserve hinted at the end of the monetary tightening cycle.
Shares of oil exploration companies fell 1.71%, becoming the worst performer among the Tokyo Stock Exchange’s 33 sub-indexes, followed by the banking sector, which fell 1.27%.
Shares of Fast Retailing, owner of the Uniqlo brand, fell 3.13%, becoming the biggest loser in the Nikkei index. SoftBank Group, the technology investor, fell 0.97%.
On the gain side, “Itochu” shares rose 1.35%. Marubeni shares fell during the session after a drop in full-year earnings forecasts, but then recovered to rise 0.1%.
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