TOKYO: Tokyo stocks fell 1.23 percent to close at their lowest level in nearly eight weeks as growing fears of eurozone crisis contagion helped boost the yen, hitting exporters.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange fell 104.72 points to 8,374.91, the lowest finish since September 26.
The Topix index of all first-section issues dropped 1.06 percent, or 7.73 points, to 719.98.
"European sovereign debt problems (have) become even more serious," said Kenichi Hirano, operating officer at Tachibana Securities.
Investors also avoided aggressive betting ahead of the weekend, which contributed to lacklustre trade, he told Dow Jones Newswires.
Spain was forced to offer euro-era-high yields at its 10-year government bond auction Thursday. France also had to pay higher prices for debt at another bond sale.
In Italy, newly installed Prime Minister Mario Monti laid out radical economic reforms on Thursday aimed at cutting Rome's huge debt mountain, boosting growth and preventing Italy from dragging down the eurozone.
The euro fetched $1.3475 in Tokyo afternoon trade on Friday, up from $1.3457 in New York late Thursday. Against the Japanese currency, the euro was almost flat at 103.58 yen.
The dollar edged down to 76.86 yen from 76.97 yen.
Financials were lower, with Mizuho Financial Group down 1.98 percent at 99 yen, below 100 yen for the first time since 2003.
Olympus, embroiled in a loss cover-up scandal, plunged 16.33 percent to 625 yen after gaining 62 percent over the past four sessions.
The shares of major Japanese exporters were also lower on the deepening European debt crisis, which sent the yen higher, said a senior strategist at a Japanese brokerage.
Suzuki Motor slipped 2.73 percent to 1,565 yen despite news reports that the company will build a new factory for passenger cars in China and double the production capacity of its Chongqing-based joint venture.
The Nikkei business daily said in its evening edition that Suzuki's soured tie-up with Volkswagen of Germany has deteriorated further after Suzuki said it plans to bring the issue to an international court of arbitration.
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