Stocks in Japan declined for the second day this week on the worries that world economy may struggle.
The euro-zone debt talks showed more stress as Greece failed to convince lenders about its deficit target and Finland demanded collateral for the loans.
The European markets were on the defensive after German Chancellor Angela Merkel controlled CDU party lost its fifth regional election in a row and German people showed a strong reluctance to fund bailout of the weaker nations in the region.
The Nikkei 225 Stock Average fell 2.2% or 193.89 to 8,590.57 and the broader Topix index declined 1.9% or 14.62 to 741.20.
Trading volume on the First Section of the Tokyo Stock Exchange increased to 2.1 billion and 1,248 shares declined and 307 stocks rose.
The yen edged higher to 76.97 from 76.80.
Toshiba dropped 5.1% to 297 yen and the diversified conglomerate planned to increase its stake in the nuclear power plant maker Westinghouse Electric through the purchase of 20% stake from Shaw Group.
The stock declined on the fear that the company may need to issue more stocks in a public offering to fund its $1.7 billion purchase.
Mitsubishi UFJ Financial Group fell 2.7% to 325 yen and Sumitomo Mitsui Financial Group decreased 3.4% to 2,098 yen. Mizuho Financial Group fell 2 yen to 110 yen.
Inpex Corp decreased 3.4% to 464,000 yen and Japan Petroleum Exploration Co fell 91 yen to 2,924 yen.
Nippon Steel decreased 1.3% to 222 yen and JFE Holdings, Inc fell 12.4% to 1,687 yen. Kobe Steel fell 2.2% to 136 yen.
Toyota Motor decreased 1.3% to 2,605 yen and Honda Motor Co. dropped 5.5% to 2,339 yen and Nissan Motor fell 3.2% 655 yen.
Sony Corp dropped 2.4% to 1,522 yen and robotics maker Fanuc decreased 3.3% 11,750.
Construction equipment makers liked to China closed higher. Komatsu declined 3.9% to 1,896 yen and Hitachi Construction Machinery Co fell 4.7% to 1,330 yen.
FamilyMart Co increased 1.5% to 2,855 yen after the Nikkei newspaper reported that the six month to August operating profit may increase 10% from a year ago.
Isetan Mitsukoshi Holdings declined 0.8% to 745 yen and Takashimaya Co decreased 1.2% to 506 yen.