Tokyo stocks opened lower on Thursday as investors were seen taking profits after three days of rallies and as fears over the US government shutdown weighed on the market.
The benchmark Nikkei 225 index was down 0.86 percent or 174.95 points at 20,252.11 in early trade, while the broader Topix index dropped 0.83 percent or 12.67 points at 1,522.44.
"As the Nikkei 225 has gained about 900 (points) in the past three days, and as the meeting between US President Donald Trump and Democratic leaders ended without a deal, investors are discouraged" to buy shares, Okasan Online Securities said in a statement.
The dollar-yen rate at below 108.50 yen is also weighing on the market, it added.
Trump has partially shut down the US government and is threatening to declare a national emergency as he pressures Congress for money to build a wall on the US-Mexican border to stem a surge in illegal immigrants.
Trump said "bye-bye" and stormed out of negotiations Wednesday with congressional leaders on funding a US-Mexico border wall when Democratic opponents refused to agree to the project.
"A total waste of time," Trump tweeted about his White House meeting with top Democratic congressional leaders. "I said bye-bye, nothing else works!"
Chuck Schumer, the top Democrat in the Senate, told journalists Trump "sort of slammed the table", then "got up and walked out."
The dollar fetched 108.14 yen in early Asian trade, down from 108.28 yen in New York and 108.87 yen in afternoon trade in Tokyo on Wednesday.
Some exporters were trading lower, with Sony off 1.93 percent at 5,308 yen, industrial robots maker Fanuc lower by 1.29 percent at 17,200 yen and ceramics and electronic parts maker Kyocera down 0.70 percent at 5,619 yen.
On Wall Street, the Dow finished up 0.4 percent at 23,879.12.