Nikkei falls 3% to worst day in 10 months on euro zone worries, strong yen

Passersby walk past in front of an electronic board displaying Japan's Nikkei average (top centre) and various countries' stock price index outside a brokerage in Tokyo Jan 6, 2015. Asian shares tumbled on Tuesday as sliding oil prices and political
Passersby walk past in front of an electronic board displaying Japan's Nikkei average (top centre) and various countries' stock price index outside a brokerage in Tokyo Jan 6, 2015. Asian shares tumbled on Tuesday as sliding oil prices and political uncertainty in Greece forced investors out of risk assets and into the safety of government bonds. Japan's Nikkei dropped 3 percent. -- PHOTO: REUTERS 

TOKYO (REUTERS) - Japanese stocks posted their biggest fall in nearly 10 months on Tuesday, as uncertainty surrounding Greece's future in the euro zone and slumping oil prices dampened risk appetite, while a stronger yen hit exporters' shares.

In its worst day since March 14, the Nikkei benchmark slipped 3.0 per cent to close at 16,883.19, not far off a six-week low of 16,672.94 hit on Dec. 17.

With oil prices at their lowest since spring 2009, the Tokyo Stock Exchange sub-index of oil and mining shares tumbled 5.5 percent. Inpex Corp shed 5.8 percent.

Exporters' shares suffered from a stronger yen, which broke through the 119 level versus the dollar late in the session. Nissan Motor Co Ltd lost 4.4 per cent and Panasonic Corp slipped 3.1 per cent.

The broader Topix fell 2.9 per cent to 1,361.14, while the JPX-Nikkei Index 400 shed 2.9 per cent to close at 12,327.80.