/www.fxserver.com/ TOKYO (AP) -- Tokyo stocks fell Thursday morning as the negative impact of the yen's recent strength against the dollar kept investors from buying. The dollar was slightly higher against the yen compared to late Wednesday.
The benchmark 225-issue Nikkei Stock Average fell 44.90 points, or 0.53 percent, to 8,427.72 at the end of the morning session. On Wednesday, the average shed 7.60 points, or 0.09 percent, to close at 8,472.62.
Despite the yen's slight fall from Wednesday, the relative strength of the yen compared to recent weeks dampened investor appetite for the market's major exporters.
Japanese exporters benefit from a weaker yen, which makes their goods more competitive overseas and raises the value of their repatriated earnings.
Canon, Honda, and Nissan, which all sell a large portion of their products abroad, were lower.
The dollar was trading at 117.32 yen at 11 a.m. Thursday, up from 117.22 yen late Wednesday in Tokyo and little changed from its late New York level of 117.31 yen.
But the greenback was weaker when compared to two weeks ago, when it traded at 118.92 yen. The dollar has been losing ground against major currencies in recent weeks as traders worry a war in Iraq could disrupt the U.S. economy.
The euro bought 128.64 yen Thursday in Tokyo, down from 128.74 yen late Wednesday. Against the dollar, it traded at $1.0963, down from $1.0983.
The broader Tokyo Stock Price Index slipped 1.76 points, or 0.21 percent, to 821.05 midday. The TOPIX, which includes all first section issues, dipped 5.24 points, or 0.63 percent, to close at 822.81 Wednesday.
On Wall Street Wednesday, major market averages moved moderately higher as investors selectively picked up bargains after two days of declines.
The Dow Jones industrial average rose 70.73, or 0.9 percent, to close at 7,775.60, having declined 186 points over the previous two sessions to a near five-month low. Gains were limited, however, amid concerns over a protracted conflict in Iraq.
The yield on Japan's benchmark 10-year government bond was unchanged Thursday morning from late Wednesday at 0.7700. Its price was also flat at 100.27.