/www.fxserver.com/ TOKYO (AP) -- Tokyo stocks were slightly weaker midday Thursday, led by falling technology blue chips after Wall Street took a drubbing. The dollar dropped sharply against the yen.
The benchmark 225-issue Nikkei Stock Average sank 29.36 points, or 0.34 percent, to 8,488.44 points by midday. The Nikkei lost 138.70 points, or 1.60 percent, to end at 8,517.80 Tuesday.
The dollar bought 119.12 yen at 11 a.m. Thursday, down 1.02 yen from late Wednesday in Tokyo, but marginally above its level of 119.12 yen in New York overnight Wednesday.
The Tokyo stock market opened weaker, with automakers, banks and technology shares Fujitsu, NEC and Hitachi all among the early decliners, following U.S. stock falls. But by midday, banks and automakers had rebounded or trimmed early losses, helping the Nikkei regain ground.
The Tokyo Stock Price Index of all issues on the first section of the Tokyo Stock Exchange shed 2.41 points, or 0.29 percent, to 837.14 points. The TOPIX fell 14.38 points, or 1.68 percent, to 839.55 points Wednesday.
In New York on Wednesday, discouraging earnings news from Alcoa and Gateway jarred Wall Street, giving blue chip stocks their biggest decline in a month as investors unloaded shares on concerns about the corporate outlook. Some investors were also cashing in on a three-day rally, which lifted the Dow Jones industrial average nearly 432 points.
The Dow fell 145.28, or 1.7 percent, to close at 8,595.31. It was blue chips' biggest decline since Dec. 9, when the Dow fell 172 points. The broader Nasdaq composite index dropped 30.50, or 2.1 percent, to 1,401.07.
In currencies, the dollar remained weaker against the yen, after taking a beating in New York trading overnight. But some traders were wary of intervention by Japanese finance authorities, who have warned of action unless the dollar bounces back.
Japanese authorities usually want a weaker yen, which helps make Japanese exports cheaper and more competitive abroad. It also helps Japanese corporate profits by boosting the value of their revenues earned overseas when converted to yen.
In New York on Wednesday, a dollar-bearish report by Bill Gross, managing director of PIMCO, the world's largest bond fund, sparked the greenback's sell-off. But some traders also appeared to be responding to concerns about the widening U.S. deficit and the increasing likelihood of a war with Iraq.
The euro bought 125.19 yen midday Thursday, down from 125.23 yen late Wednesday, in Tokyo. Against the dollar, the euro was at $1.0509, up from $1.0419.
The yield on the benchmark 10-year government bond was quoted at 0.8900 percent midday Thursday, up from its four-year low of 0.885 percent late Wednesday. Its price had fallen 0.04 to 101.00.