Tokyo Stocks Turn Lower

A sharp rise in the dollar depressed share prices today on the Tokyo Stock Exchange. The 225-issue Nikkei average, which rallied sharply in the previous two days, lost 457.03 points, or 1.13%, to finish the morning session at 34,134.96.

The dollar rose to 149.50 yen in late morning, up from 149.35 yen at the opening and 148.52 yen at Wednesday’s close. The dollar moved in a range of 149.35 yen to 149.90 yen during the morning.

“The largest concern among market players is the foreign exchange situation,” said Yoshiro Inoue of Nomura Securities Co.

In addition to the weaker yen, securities dealers attributed the fall in the Nikkei to profit-taking by investors, who took advantage of gains in the previous two days.

Falling Japanese government bond prices also discouraged stock investors, Inoue said. Lower bond prices boost interest rates, which makes stocks less attractive.