Tokyo stocks slipped Friday morning after Wall Street declined on disappointing earnings from the technology sector. The dollar was higher against the yen and the euro.
The benchmark Nikkei Stock Average of 225 selected issues slipped 12.48 points, or 0.11 percent, to end morning trade at 11,272.29 points. The Nikkei lost 120.57 points, or 1.06 percent, on Thursday.
The dollar bought 103.49 yen on the Tokyo foreign exchange market at 11 a.m. Friday, up 0.77 yen from late Thursday and above the 103.35 yen it bought in New York overnight.
Stocks fell as investors took a cue from Wall Street's drop Thursday on disappointing earnings from the technology sector. But the index made up most losses on the back of the dollar's strength.
The Dow Jones industrial average fell 68.50, or 0.65 percent, to 10,471.47. The tech-heavy Nasdaq composite index dropped 27.71, or 1.34 percent, to 2,045.88.
In Tokyo Friday morning, the broader TOPIX, or the index of all issues on the Tokyo Stock Exchange's first section, lost 0.83 points, or 0.07 percent, to 1,132.54. The TOPIX fell 10.93 points, or 0.96 percent, the day before.
In currencies, the dollar extended the gains it has made in the new year as U.S. Federal Reserve officials continued to warn they would not allow inflationary pressure to build.
The euro fell to $1.2936 Friday morning in Tokyo from $1.2986 late Thursday. Against the Japanese currency, the euro rose to 133.83 yen from 133.64 yen.
The yield on Japan's benchmark 10-year government bond dipped to 1.3450 percent from Thursday's finish of 1.3500 percent. Its price rose 0.05 to 100.48 points.