/www.fxserver.com/ TOKYO (AP) -- Tokyo stocks fell Thursday morning after U.S. shares declined for a second straight day on Wall Street. The dollar gained against the Japanese yen.
The benchmark 225-issue Nikkei Stock Average slipped 37.14 points, or 0.42 percent, to 8,627.03 at midday Thursday. On Wednesday, the average climbed 179.24 points, or 2.11 percent, to close at 8,664.17.
The dollar bought 121.00 yen at 11 a.m. Thursday, up 0.20 yen from late Wednesday in Tokyo but down from its late Wednesday New York level of 121.31 yen.
Tokyo stocks were ripe for profit-taking after two days of gains, traders said. Major exporters -- such as Sony and Toyota -- who had led gains in recent days, were losers Thursday morning.
Many exporters had seen their shares climb Wednesday amid hopes a fall in the yen would lift their profits. A weaker yen makes Japanese goods more competitive overseas and boosts the value of repatriated earnings.
The broader Tokyo Stock Price Index of all first section issues fell 1.60 points, or 0.19 percent, to end the morning session at 855.63 Thursday. The TOPIX gained 14.54 points, or 1.73 percent, to close at 857.23 Wednesday.
On Wall Street, stocks declined for a second straight day as investors fell deeper into their morass of fear about terrorism and war with Iraq. Investors have been selling shares out of concern a war would hurt economic growth and corporate earnings.
U.S. stocks were also hurt after Federal Reserve Chairman Alan Greenspan said the president's new $1.3 trillion package of tax cuts would worsen an already bad outlook for the federal deficit.
The Dow Jones industrial average closed down 84.94, or 1.1 percent, at 7,758.17.
In currency trading, the euro bought 129.81 yen late Thursday morning in Tokyo, up from 129.58 yen late Wednesday. Against the dollar, it traded at $1.0726, up from $1.0720 late Wednesday.
The yield on Japan's benchmark 10-year government bond rose to 0.8500 late Thursday morning from 0.8400 percent late Wednesday. Its price fell 0.09 to 99.54.