TOKYO – Stocks dropped Thursday morning after U.S. shares finished sharply lower. The dollar was higher against the yen.
The benchmark 225-issue Nikkei Stock Average shed 247.96 points, or 1.89 percent, to 12,855.98 at the end of the morning session. On Wednesday, the average closed up 912.97 points, or 7.49 percent.
The dollar bought 123.60 yen at late morning, up 0.66 yen from late Wednesday in Tokyo and also above its late New York level of 123.46 yen.
On the stock market, the Nikkei index started lower after investors were discouraged by the retreat in U.S. stocks. Much of Wednesday’s gain in Tokyo was attributed to government-backed buying.
The average later temporarily moved into positive territory on buying of some technology issues and banking stocks, but it soon fell back to negative territory.
In New York, the Dow Jones industrial average dropped 233.76 points to 9,487.00 at Wednesday’s close. The Nasdaq composite index ended at 1,830.23, down 27.21.
The broader Tokyo Stock Price Index of all issues listed on the first section lost 12.36 points, or 0.97 percent, to 1,263.05 Thursday. The TOPIX closed up 75.80 points, or 6.32 percent, the day before.
In currency dealings, the dollar strengthened against the yen amid continued pessimism over Japan’s economy.
In other currencies, the euro was traded at 110.68 yen, down from 111.56 yen late Wednesday in Tokyo.
The yield on the benchmark 10-year Japanese government bond rose to 1.0650 percent from Wednesday’s finish of 1.0450 percent. Its price fell 0.01 point at 103.20.
