Nikkei tumbles to one-month low, has biggest drop in five months on strong yen

TOKYO (Reuters) - Japan's Nikkei average tumbled 3.1 percent to a one-month low on Tuesday, posting the biggest one-day drop in five months after the yen rose sharply following a weaker-than-expected U.S. payrolls report.

The Nikkei ended 489.66 points lower at 15,422.40 after hitting as low as 15,383.69, its lowest level since December 18. It was the biggest daily percentage drop since August 7.

The broader Topix dropped 2.3 percent to 1,269.08, with all of its 33 subsectors in negative territory.

The JPX-Nikkei Index 400, a new index of companies with high returns on equity and strong corporate governance to appeal to investors, slid 2.2 percent to 11,450.93.

Japanese markets were closed Monday for a holiday, so Tuesday's trading was the first since the weak U.S. December payroll data.

The dollar fell more than 1 percent overnight - its biggest one-day drop since September 18 - and hit a four-week low against the yen as investors reassessed how quickly the Federal Reserve might scale back its stimulus after the soft jobs data. It last traded at 103.32 yen.

(Reporting by Ayai Tomisawa; Editing by Chris Gallagher and Richard Borsuk)