The Nikkei index fell by 1.7% due to the drag from automobile and electronic stocks.

The Japanese stock market fell, following a significant rebound in the yen late on Friday. Automakers and electronics stocks led the decline. Nissan Motor fell 4.3%, Toyota Motor fell 3.9%, while Murata Manufacturing Co. fell 4.4% and Rohm Co. fell 4.8%. The US dollar was trading at 155.03 yen, a sharp drop from 158.66 yen at the close of the Tokyo stock market on Friday. Investors are closely watching Prime Minister Takanashi's economic plan details ahead of the parliamentary election in early February. The Nikkei index fell 1.7% to 52,926.53 points.