TOKYO, Aug 25 (Reuters) - Japan's Nikkei average briefly fell more than 2 percent on Wednesday, hitting a 16-month low, as disappointment spread in the market over a lack of Japanese policy action to rein in the strong yen, which threatens a fragile economic recovery.
Japan's finance minister sharpened his rhetoric on the yen's steep gains after the Nikkei newspaper reported Japan may consider selling the yen in solo intervention if speculators drive it up, but the lack of any actual policy moves or meetings aimed to discuss such moves pushed the Nikkei lower, market players said.
The benchmark Nikkei was down 1.7 percent or 151.80 points at 8,843.34, while the broader Topix lost 1.3 percent to 807.38. (Reporting by Elaine Lies)