Japan’s Nikkei share average fell on Tuesday morning as Greece’s rejection of its bailout terms fuelled concerns over the prospect of fresh turmoil in the euro zone, but Nissan Motor Co outperformed on rosy forecasts.

The Nikkei fell 0.7 per cent to 17,589.35 in mid-morning trade after rising 0.4 per cent on Monday.

Greece’s Prime Minister Alexis Tsipras ruled out any extension of its international bailout on Sunday and announced moves to reverse some of the reforms imposed by its lenders.

“Investors are risk averse because of the Greece situation,’’ said Shigemitsu Tsuruta, senior strategist at SMBC Friend Securities.

But he added that losses should be limited as companies such as Nissan which impressed the market with good earnings and high dividend yields are in demand.

Nissan soared 4.4 per cent to a two-month high of 1,111 yen after it raised its profit forecast for what is already set to be its best year since 2008.

Nomura Securities raised the automaker’s target price to 1,500 yen from 1,400 yen, maintaining a ‘buy’ rating.

Nissan’s dividend yield stands at 2.98 per cent, versus the Nikkei average yield of 1.45 per cent.

After the market’s two-day gains, 23 out of Topix’s 33 subsectors are in negative territory on Tuesday.

As oil prices rose, rubber makers underperformed, with Bridgestone Corp and Yohohama Rubber Co both falling 1.2 per cent.

Oil jumped for a third straight session on Monday as OPEC forecast greater demand for crude this year than previously thought and projected reduced supply from countries outside the producer group.

Exporters were weaker as the dollar eased to 118.54, giving back about a third of Friday’s 1.4 per cent rally to 119.23.

Advantest Corp dropped 2.3 per cent and Panasonic Corp shed 0.6 per cent.

The broader Topix dropped 0.3 per cent to 1,420.63 and the JPX-Nikkei Index 400 also fell 0.3 per cent to 12,873.27.

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