Tokyo Stocks Tumble Again

The dollar soared to a three-year high against the yen this morning and the currency’s gain triggered a plunge in share prices on the Tokyo Stock Exchange.

The 225-issue Nikkei stock average shed 516.38 points, or 1.62%, ending the morning session at 31,309.58. The index fell 14.53 points Tuesday.

In addition to depressing stocks, the yen’s weakness sent government bond prices falling and yields rising. The yield on the benchmark No. 119 government bond rose to 7.385% from 7.345% the previous day.

The Nikkei index was more than 650 points lower in early trading but made up some of its losses as market players picked up shipbuilding issues whose prices had fallen earlier, dealers said.