The benchmark Nikkei 225 index fell 0.16% at 22,715.85, its lowest closing since July 17.
The plunge in eurozone business activity caused by lockdowns imposed to stop the spread of the coronavirus eased sharply last month as more businesses reopened and people ventured out, a survey showed on Friday.
Japan’s exports plunged at a double-digit pace for the fourth month in a row in June, backing signs the coronavirus crisis has knocked the economy into its worst postwar recession and raising the spectre of a longer and more painful global downturn.
Nissan Motor forecast on Tuesday its biggest-ever annual operating loss and said it expects vehicle sales to tumble 16% as the coronavirus pandemic hampers the company’s efforts to turn around its business.
The Nikkei index settled 1.59% higher at 22,945.50 after hitting its highest level since June 10, with industrial and consumer discretional shares leading the advance.
World stock markets advanced Monday, helped by investor confidence in upcoming US quarterly earnings and the business outlook, and by hopes for progress towards a coronavirus vaccine, dealers said.
Many countries have imposed travel curbs amid the pandemic but Japan's are among the most strict, effectively banning entry of tourists and visa holders coming from 129 countries.
Japanese Finance Minister Taro Aso described the yen’s recent rise as “rapid” on Friday, signalling concern that a strong currency could add pain to an export-led economy already in recession because of the novel coronavirus.
Japan unveiled on Tuesday a second package of measures worth about $4 billion in spending to cope with the fallout of the coronavirus outbreak, focusing on support to small and mid-sized firms, as concerns mount about risks to the fragile economy.