/www.fxserver.com/ TOKYO (AP) -- Tokyo stocks were moderately lower Friday morning as jittery investors sold blue chips on worries that a prolonged war in Iraq could hurt the economy. The U.S. dollar was rebounding against the yen.
The benchmark 225-issue Nikkei Stock Average had lost 43.34 points, or 0.52 percent, to 8,325.33 at the midday break. The Nikkei added 16.75 points, or 0.20 percent, on Thursday.
The U.S. dollar bought 119.97 yen, down 0.01 yen from late Thursday but above the 119.93 yen in New York trading overnight.
On the stock market, activity was sluggish, and some corporate investors sold blue-chip technology stocks from pension fund portfolios, traders said. Export-dependent shares such as automaker Toyota and technology bellwethers Hitachi and Fujitsu were lower, and the country's two flagship carriers, Japan Airlines and All Nippon Airways, were also posting losses.
Investors awaited news about U.S. and British forces in Iraq, worried that a drawn out conflict could pose risks for the economy and prompt businesses and consumers to curb spending, traders said.
The broader Tokyo Stock Price Index was down 1.76 points, or 0.21 percent, to 821.70 points Friday morning. The TOPIX, which includes all first-section issues, rose 2.03 points, or 0.25 percent, Thursday.
In currencies, the dollar was gaining ground against the yen in Tokyo after Japanese Finance Ministry international bureau chief Zembei Mizoguchi reiterated Friday that he was keeping an eye on currency rates.
Mizoguchi's remarks were meant as a warning to traders that Japanese authorities may buy dollars against the yen to weaken the Japanese currency.
The euro bought $1.0674 midday Friday in Tokyo, down from $1.0706 late Thursday. Against the yen, the euro traded at 128.48 yen, up slightly from 128.42 yen Thursday.
The yield on Japan's benchmark 10-year government bond was flat at 0.7350 percent, and its price was 100.60.