The Japanese yen retreated against the dollar in Tokyo as traders kept the greenback well bid following the release of disappointing Japanese economic data.
Japan's unemployment rate climbed to 4.7 percent in February compared with 4.5 percent for the previous month. The biggest blow to the yen bulls was a 4.1 percent drop in household spending, which accounts for half of the Japan's economic growth. The latest batch of the economic data reveals that the world's second largest economy is far from completely recovering from the recession it experienced during the last quarter of 2004. The Japanese yen was quoted at 107.20-24 against the dollar, 138.58-62 versus the euro and 200.71-80 against the British Pound at 09:30 GMT.
Tokyo stocks tumbled after weaker that expected Japanese economic data shattered investor's confidence in the world's second largest economy.
The Nikkei Stock 225 Index fell 192.48 points, or 1.63 percent, to close at 11,599.82. The First Section TOPIX on the Tokyo Stock Exchange lost 18.42 points, or 1.54 percent, to 1,175.62.
The day's volume leader was Sumitomo Metal Industries, down 8 yen to 190 yen. Canon was the most heavily traded issue by value, up 20 yen to 5,630 yen.
Steel and insurance sectors led the broad market lower with only mining defying the overall trend and heading higher.
Kyocera fell 220 yen to 7,660 yen after announcing a it owed the government 13 billion yen in penalty taxes.
Yoshinoya D and C, Japan's largest chain of ''gyudon'' beef-on-rice dishes, added 1,000 yen to 177,000 yen after the government decision to start importing beef from the US.
Losers beat winners 1,419 to 179, with 49 issues remaining unchanged.
Volume on the TSE was light with 1,474.06 million shares changing hands.
The TSE's Second Section index dropped 20.69 points, or 0.57 percent, to 3,637.62 on a volume of 97.08 million shares.
In Osaka, the near-term June Nikkei 225 index futures contract ended down 230 points to 11,580.