Tokyo stocks fell Wednesday morning as investors were disheartened by disappointing industrial output figures and sharp declines in the previous session. The U.S. dollar was up against the yen and the euro.
The Nikkei Stock Average of 225 selected issues dropped 42.77 points, or 0.37 percent, to 11,557.05 points. On Tuesday, the benchmark index lost 192.48 points, or 1.63 percent, to close at their lowest level in a month.
The dollar was trading at 107.41 yen at 11 a.m. (0200 GMT) Wednesday, up 0.25 yen from late Tuesday in Tokyo but below the 107.51 yen it bought in New York later that day.
Stocks took their cue from Wall Street, where technology shares ended at a five-month low Tuesday amid end-of-quarter selling and uneasiness about the U.S. economy.
Weaker-than-expected economic data released early Wednesday did little to boost sentiment, as the government reported that Japanese industrial production fell 2.1 percent in February. That was greater than the market forecast of 1.2 percent.
Among the decliners were major banks like Mitsubishi Tokyo Financial Group and Mizuho Holdings, as well as chipmaker Advantest Corp. and Sony Corp.
Overnight in New York, the Dow Jones industrial average fell 79.95, or 0.8 percent, to 10,405.70. The tech-heavy Nasdaq composite index lost 18.64, or 0.9 percent, to 1,973.88 -- the worst close for the index since Oct. 27.
In Tokyo, the broader TOPIX, which includes all issues on the Tokyo Stock Exchange's first section, fell 6.94 points, or 0.59 percent, to 1,168.68 points in the morning session. The TOPIX lost 18.04 points, or 1.51 percent, Tuesday.
In other Tokyo currency trade, the euro rose to US$1.2943 from US$1.2925 late Tuesday and to 138.96 yen from 138.60 yen.
The yield on Japan's benchmark 10-year government rose to 1.3650 percent from Tuesday's close of 1.3450 percent. Its price dipped 0.18 to 101.18.