/www.fxserver.com/ TOKYO (AP) -- Tokyo stocks gained slightly in Tuesday morning trading after losing more than 3 percent the day before over fears a prolonged war in Iraq could hurt Japan's fragile economy. The dollar was lower against the yen.
The 225-issue Nikkei Stock Average was up 3.32 points, or 0.04 percent, to end the morning session at 7,976.03. On Monday, the index lost 307.45 points, or 3.71 percent. It lost 27.7 percent of its value over fiscal 2002, which ended Monday.
The dollar bought 118.28 yen at 11 a.m., down 0.74 yen from late Monday in Tokyo but slightly above the 118.14 yen in late New York trading.
On the stock market, Tokyo opened Tuesday's trading lower as investors were discouraged by Wall Street's sharp drop Monday amid growing pessimism over the prospects of the Iraq war.
The Dow Jones industrial average closed out Monday's trading down 153.64, or 1.9 percent, at 7,992.13. The broader Nasdaq sank 28.43, or 2.1 percent, to 1,341.17.
But prices in Tokyo rose back to positive territory as investors bought oversold issues.
A central bank survey released Tuesday showed Japan's business sentiment among major Japanese manufacturers worsened in the January-March quarter as worries grew that falling stock prices and the war in Iraq may hurt economic recovery.
The broader Tokyo Stock Price Index gained 2.36 points, or 0.30 percent, to 790.36.
On Monday, the TOPIX -- which includes all first-section issues, Japan's largest companies -- closed down 29.92 points, or 3.66 percent.
Among morning gainers were automakers Honda, Toyota and Nissan as well as electronics giants Fujitsu and Toshiba. Banks such as UFJ and Mizuho fell.
In currencies, the dollar weakened following overseas trading Monday, when it fell against other major currencies on war fears.
The euro bought $1.0906 late morning Tuesday in Tokyo, up from $1.0874 late Monday. Against the yen, the euro traded at 129.00 yen, down from 129.40 yen.
The yield of benchmark Japanese government bonds slipped to 0.6950 percent from 0.7000 percent late Monday. Its price rose 0.04 to 100.97.
Government bonds have benefited from investor anxieties. Protracted pessimism about the Japanese economy has prompted consumers to place their money in what they consider a safer investment.