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 1.52 percent lower on Monday after rallying at the end of last week to a 33-month high, and as the Bank of Japan begins a two-day policy meeting.

The benchmark Nikkei 225 index ended 165.56 points lower at 10,747.74, while the Topix index of all first-section shares fell 0.69 percent, or 6.28 points, to 905.16. - Sapa-AFP