Japanese stocks slipped slightly on Wednesday morning in choppy trade as the stronger yen soured sentiment, offsetting gains in some automakers after their strong US sales numbers.
The Nikkei dropped 0.2 per cent to 21,258.02 in midmorning trade, after trading in positive territory earlier, reports Reuters.
The dollar eased against the yen, with the outlook clouded by worries that escalating US-China trade tensions could take a toll on the global economy.
Tech shares continued to struggle, with Tokyo Electron dropping 2.2 per cent, Advantest Corp falling 1.4 per cent and TDK Corp shedding 1.5 per cent.
Major automakers on Tuesday reported higher new vehicles sales for March on the back of a strong US economy and big consumer discounts.
Honda Motor Co rose 1.1 per cent after it said its March sales rose 3.8 per cent, thanks largely to SUV and pickup truck sales.
Mazda Motor Corp gained 1.3 per cent, Mitsubishi Motors Corp climbed 1.7 per cent and Subaru Corp jumped 1.9 per cent after marking respective increases of 35.7 per cent, 21.7 per cent and 5.9 per cent.
The broader Topix declined 0.1 per cent to 1,701.89.