Japanese shares dropped Tuesday after overnight losses on Wall Street and as export-oriented issues were dragged down by a stronger yen against major currencies. The benchmark Nikkei 225 Stock Average lost 88.18 points, or 1.02 per cent, to end at 8,536.72 while the broader-based Topix index was down 5.7 points, or 0.78 per cent, at 724.37, according to a report of DPA.