Tokyo stocks fell Tuesday morning, led by selling of chip-related and technology shares as overnight declines in U.S. tech markets spurred investors to adjust positions following recent rises.
The 225-issue Nikkei Stock Average fell 233.57 points, or 0.60 percent, from Monday to 38,586.92. The broader Topix index was down 33.60 points, or 1.26 percent, at 2,633.23.
On the top-tier Prime Market, decliners were led by wholesale product, bank and insurance issues.
The U.S. dollar was initially weaker in the upper 146 yen range, but it quickly strengthened to the lower 147 yen zone late in the morning.
Analysts said the swift change in pitch came as market observers took Bank of Japan Governor Kazuo Ueda's comments to an upper house lawmakers' committee as an indication that the central bank may not move from its negative interest rate policy at its March meeting.
At noon, the dollar fetched 147.40-43 yen compared with 146.89-99 yen in New York and 146.73-75 yen in Tokyo at 5 p.m. Monday.
The euro was quoted at $1.0935-0939 and 161.18-27 yen against $1.0920-0930 and 160.48-58 yen in New York and $1.0941-0943 and 160.54-58 yen in Tokyo late Monday afternoon.
Equities in Tokyo fell again after dropping the previous day, but losses were trimmed late in the morning after the dollar rallied against the yen, raising prospects of higher earnings for exporters when repatriating overseas profits.
Some heavyweight chip-related and technology shares were sold after the U.S. Nasdaq index and a key semiconductor-related index both posted falls overnight.
"With no sign yet of a halt to falls in semiconductor markets in the United States, we're seeing a continuation of adjustment selling in Tokyo," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.
