The Nikkei dropped on Tuesday (March 26th) as investors continued to be cautious about the Cyprus bailout.
Talks in the European country have yielded an agreement, but the markets have not responded well to the news.
On Tuesday, the Nikkei slipped by 0.5 per cent to close the day at 12,488.39, with a senior dealer at a foreign bank in Tokyo telling Reuters there have been some "pretty good flows" on the index.
"We do have a bit of profit taking in some blue chips. I guess we are 50-50 (in buy and sell orders)," he said.
Dutch finance minister Jeroen Dijsselbloem has suggested the bailout in Cyprus could represent a new way of handling financial crises in the eurozone.
The Nikkei was down by almost two per cent over the course of last week as investors took their profits out of the market due to fears over the Cyprus bailout.
Major corporations saw their stocks lose value, with Mazda Motor Corp down 2.7 per cent.
Learn about the Asian markets and CFD trading at City Index.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.