Major equities markets in Tokyo were lower on Wednesday.
The Nikkei 225 fell 0.8 percent to 17,858.42, while the Topix index dropped 0.68 percent to 1,754.03.
On the other hand, the Mothers market of small and mid-caps added 0.66 percent to close at 857.81.
The retail sector was mixed.
In mergers rumors, department stores Mitsukoshi (TYO: 2779) and Isetan (TYO: 8238) were said to be talking about making a capital alliance and could look to merge later on.
Mitsukoshi added 7.51 percent to ¥587 and Isetan closed even at ¥1,901, while elsewhere in the retail sector, Seven & I (TYO: 3382) fell 0.29 percent to ¥3,490.
Exporters were hurt by a stronger yen.
In the automobile manufacturing sector Toyota Motor (TYO: 7203.T; NYSE: TM; LSE: TYT) was 1.33 percent lower to ¥7,410, while Honda Motor (TYO: 7267; NYSE: HMC) dropped 1.78 percent to ¥4,420.
In the electronics sector Sony (TYO: 6758; NYSE: SNE) was down 0.32 percent to ¥6,280 and Matushita Electric Industrial (TYO: 6572; NYSE: MC) fell 3.59 percent to ¥2,285.
In the oil sector, Nippon Oil (TYO: 5001) dropped 3.86 percent to ¥1,121 as the price of crude oil continued to decline.