Tokyo stocks dropped slightly Wednesday morning as investors remained wary ahead of the release of U.S. inflation data later in the day.
The 225-issue Nikkei Stock Average fell 106.89 points, or 0.27 percent, from Tuesday to 39,666.24. The broader Topix index was down 4.77 points, or 0.17 percent, at 2,749.92.
The U.S. dollar moved little in the upper 151 yen range as investors refrained from active trading ahead of the U.S. consumer price index data for March, dealers said.
At noon, the dollar fetched 151.75-76 yen compared with 151.72-82 yen in New York and 151.90-91 yen in Tokyo at 5 p.m. Tuesday.
The euro was quoted at $1.0851-0855 and 164.66-74 yen against $1.0851-0861 and 164.72-82 yen in New York and $1.0853-0854 and 164.86-90 yen in Tokyo late Tuesday afternoon.
Stocks moved in a narrow band within negative territory, as investors locked in gains after a two-day rally saw the Nikkei climb nearly 800 points.
A sense of caution prevailed in the market, as higher-than-projected U.S. inflation may lead the Federal Reserve to keep interest rates elevated for longer than expected or reduce the number of possible interest rate cuts this year, analysts said.
