The Japanese stock market is in an unenthusiastic state after the announcement by the Bank Of Japan (BoJ) that it will raise interest rates.
The Nikkei 225 index fell 2.5% to around 38,100 while the Topix index slipped 2.3% to 2,730 on Thursday, reversing gains from the previous session when the yen rose sharply following a rate hike by the central bank.
A strong yen is hurting the profit outlook for Japan's export-heavy industry.
On Wednesday, the BOJ raised its policy rate "to around 0.25%" and outlined its plan to reduce bond purchases in a bid to normalize monetary policy settings.
Data on Wednesday also showed that Japanese authorities spent 5.53 trillion yen to support the currency through intervention in July.
Sharp losses were seen from index heavyweights such as Disco Corp (-3.6%), SoftBank Group (-5.3%), Toyota Motor (-4.6%), Mitsubishi Heavy Industries (-4.4%) and Fast Retailing (-3.9%).
Meanwhile, Advantest rose 15.4% after raising its full-year profit outlook on strong demand from chip testers.
