Tokyo stocks opened 0.17 percent lower on Tuesday as a stronger yen weighed on sentiment despite a positive performance from shares on Wall Street.
The Nikkei 225 index at the Tokyo Stock Exchange was down 22.77 points to 13,545.60 at the start.
The benchmark index is likely to be range-bound Tuesday as the dollar has fallen, disappointing those who had hoped it would soon hit the 100-yen mark after the Group of 20 economic powers' meeting, traders said.
"US shares' overnight rise will help support the market today but the dollar's pullback is likely to be the deciding factor," said SMBC Nikko Securities general manager of equities Hiroichi Nishi.
"The dollar is still on track for a re-test of the 100-yen mark, but a more protracted consolidation period may be in order first," he said.
The dollar was changing hands at 99.19 yen in early Asian trade, compared with 99.35 yen in New York late Monday.
The greenback was much higher in Tokyo early Monday, fetching 99.77 yen.
The euro, which edged higher Monday after Italy re-elected its president in a move towards greater political stability, bought $1.3061 and 129.61 yen against $1.3062 and 129.77 yen in US trade.
US stocks rose Monday amid mixed earnings reports, with the Dow Jones Industrial Average gaining 19.66 points (0.14 percent) to 14,567.17.
-- Dow Jones Newswires contributed to this article --