Summary The Nikkei 225 index at the Tokyo Stock Exchange slid 298.86 points to 16,898.87 by the break.
TOKYO (AFP) - Tokyo shares fell 1.74 percent on the back of a stronger yen Tuesday morning, while Wall Street provided a negative lead as oil prices slumped towards six-year lows.
The Nikkei 225 index at the Tokyo Stock Exchange slid 298.86 points to 16,898.87 by the break, while the Topix index of all first-section shares was down 1.57 percent, or 21.64 points, at 1,358.94.
The Japanese market, which was closed Monday for a national holiday, slumped at the open as it tracked the weak lead from New York.
"Falling oil prices are dragging US earnings and wages lower," Toshihiko Matsuno, chief strategist at SMBC Friend Securities, told Bloomberg News.
"We re seeing some worries beginning to appear about the US economy."
On Wall Street, the Dow dropped 0.54 percent, the S&P 500 sank 0.81 percent and the Nasdaq lost 0.84 percent.
That came as European benchmark Brent crude closed below $50 a barrel for the first time since April 2009, hitting shares of energy firms, following a gloomy petroleum market forecast from Goldman Sachs.
In forex markets, the dollar weakened to 117.94 yen in Tuesday trade, from 118.27 yen in New York. A stronger yen hurts the profitability of major Japanese exporters.
Toyota shares dropped 2.52 percent to 7,417.0 yen, Sony tumbled 3.81 percent to 2,500.0 yen and Uniqlo clothing chain operator Fast Retailing was off 2.38 percent at 43,695.0 yen.
Falling oil prices hit energy shares, with Inpex down 3.48 percent at 1,192.5 yen and oil
