The Nikkei average fell 1.44 percent to 47,582.15 while the broader Topix index settled 1.03 percent lower at 3,170.44.
Banks led losses amid signs of credit stress at U.S. regional banks. Mitsubishi UFJ Financial, Sumitomo Mitsui Financial and Mizuho Financial lost 3-4 percent. Technology investor SoftBank Group tumbled 3.4 percent.
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