Tokyo stocks closed lower on Tuesday as investor sentiment was dampened by political uncertainty in Europe, with the yen's rise contributing to a rise averse mood.

The 225-issue Nikkei Stock Average lost 122.66 points, or 0.55 percent, from Monday to close the day at at 22,358.43.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, dropped 8.57 points, or 0.48 percent, to finish at 1,761.85.

Pulp and paper, nonferrous metal and financing business issues comprised those that declined the most by the close of play.