The Nikkei average slid 1.67 per cent today as investors sold Canon and other exporters amid the dollar's slip below 118 yen and weaker Asian stocks.
Market sentiment turned sour after the Shanghai Composite Index dropped more than 3 per cent on the view that Chinese economic data could spark turbulence.
China postponed the announcement of its latest economic data from this morning to the afternoon, which some said could be an attempt by the authorities to blunt the market impact of what might be exceptionally strong figures.
Strong data could lead to another rise in interest rates.
A higher yen encouraged investors to lock in profits on high-tech and auto shares, as it cuts the value of their overseas sales when translated back into the Japanese currency.