A man looks at his watch as he passes an electronic board displaying a graph of currency rates outside a brokerage in Tokyo.

Tokyo stocks closed flat on Tuesday in see-saw trade as an early bargain-hunting rally give way to the stubbornly high yen and fears about a US budget deadlock.

The benchmark Nikkei 225 index at the Tokyo Stock Exchange was down 0.18 percent, or 15.39 points, at 8,661.05, while the broader Topix index of all first-section shares was flat, giving up just 0.02 points, at 722.56. - Sapa-AFP