Fast Retailing dropped 1.83%, as weak outlooks from U.S. retailers Home Depot HN.N and Walmart WMT.N dented confidence. "It seems to be driven by the declines on Wall Street, stoked by both yield rises but also geopolitical fears," said Charu Chanana, a strategist with Saxo Markets in Singapore. Market participants were also nervous ahead of Japanese inflation data due on Friday and central bank governor nominee Kazuo Ueda's appearance before parliament on the same day, Chanana added.