The Nikkei 225 Index is down 1.48% at 8959.13, paring morning losses after Japan's economics minister Kaoru Yosano said there was no need for the government to consider intervening tosupport the stock market.
Tech stocks are the chief laggards on fears that the yen will continue to strengthen, despite the Japanese currency weakening during Asian trading on expectations that the Bank of Japan will intervene to depress the value of the currency.
Utilities and oil majors are proving key support.