The Nikkei fell for the fourth consecutive session as fresh concern about the euro zone's mounting sovereign debt problems stifled buyer appetite.

Exporters felt the strain. Shares in Canon were down 0.4%, Advantest declined 1.5% while Toshiba lost 2.6%.

Other stocks on the move included Toyota Motor which rose nearly 3% as bargain hunters moved in. The group said it would recall almost half a million of its Prius and other hybrid models following problems with sticky brakes.

Defensives such as Takeda Pharmaceutical were sent lower. It shares fell 2.6%.

Sumitomo Mitsui Financial surged 2.1% after it reported better than expected earnings.

The benchmark Nikkei 225 index closed down 18 points at 9,933 in Tokyo, a two month closing low.

Hong Kong's Hang Seng Index finished strongly ahead after an uncertain start to the session as a strong show among property stocks outweighed weakness among financials.

China Overseas Land rose 2% while Hang Lung Properties advanced 3.1%. HSBC declined 1.8% to HK$78.50.

Elsewhere a recovery in crude oil prices helped shares in CNOOC 1.8% higher.

The Hang Seng index closed 239 points higher at 19,790 in Hong Kong.

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