TOKYO: Tokyo stocks fell 0.42 percent on Friday morning following drops on Wall Street and in Europe after US unemployment data and a successful Spanish debt sale failed to encourage investors.
The Nikkei 225 index at the Tokyo Stock Exchange fell 40.24 points to 9,548.14 by the break. The broader Topix index of all first-section issues was down 0.42 percent, or 3.41 points, to 810.72.
"Investor appetite continues to look limited, market movements choppy," said Mattia Ciancaleoni, director of equity sales at Citigroup Global Markets Japan.
"And overall trading volume is likely to stay somewhat subdued at least until next week's (Bank of Japan) meeting and more evidence of further monetary easing from the central bank," Ciancaleoni told Dow Jones Newswires.
"April continues to be a tough month for investors, but after a stellar January-March quarter, that is to be expected to some degree."
Bank of Japan, the central bank, is to hold a policy meeting on April 27 amid expectations of further credit easing.
Several bellwether heavyweights were down, including factory-automation systems maker Fanuc with a 0.60 percent decline to 14,700 yen, while Toyota was off 2.08 percent to 3,290 yen.
European and US stocks weakened Thursday amid downbeat US labour market and housing data, said Tatsunori Kawai, chief strategist at kabu.com Securities.
"The momentum of overseas markets is not encouraging for equity investors, while currency markets normally a catalyst for Japan shares are not helping either," he said.
"The dollar continues to languish at the 80-81 yen level, which frankly is just not enough to stoke enthusiasm for exporter stocks," he said.
The dollar was changing hands at 81.55 yen in midday Tokyo trade, almost flat from 81.60 yen in New York late Thursday.
The euro fetched $1.3136 and 107.17 yen, compared with $1.3134 and 107.19 yen.
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