TOKYO:Tokyo stocks fell 1.45 percent Monday morning, tracking declines on Wall Street, as sentiment was also hit by a strong yen and ongoing concerns overEurope's debt problems.
The Nikkei 225 index at the Tokyo Stock Exchange lost 139.31 points to 9,498.68 by the break. The Topix index of all first-section issues dropped 1.10 percent, or 8.96 points, to 806.52.
Exporters were hurt by the yen's rise, said Rakuten Securities senior market analyst Masayuki Doshida, as a stronger currency makes their products more expensive overseas.
The euro was trading at its lowest level in nearly two months against the Japanese currency, buying 105.35 yen inTokyomiddaytrade against 105.83 yen inNew Yorklate Friday. The dollar changed hands at 80.86 yen, compared with 80.91 yen.
Masayuki Otani, chief market analyst at Securities Japan, said sentiment was also hit by declines in US and European markets on Friday afterChinareleased slower-than-expected economic growth figures for the first quarter.
"Market participants are afraid of taking positions" until they assess US economic data and corporate earnings to be released later in the day, he said.
Investors were unfazed afterChina's central bank said Saturday that it would wide the yuan's trading band against the dollar, amid criticism thatBeijingkeeps the currency artificially low to boost exports.
"This level of widening is unlikely as a catalyst and the (People's Bank of China) likely won't move on further widening amid concerns over a slowdown in the country's economic growth, while (monetary) easing hopes still remain," said Rakuten's Doshida.
Exporters were lower with Nissan dropping 1.81 percent to 810 yen and factory-automation systems maker Fanuc down 1.93 percent at 14,720 yen.
Sony added 0.27 percent to 1,448 yen after plunging 5.49 percent Friday as its new chief's turnaround plans for the loss-making electronics giant failed to impress.
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