Tokyo shares down on stronger yen

Tokyo, Oct 8 (DPA) Japanese stocks declined in Friday morning trading as investors sold shares to lock in immediate gains with investor sentiment hurt by a stronger yen.

The benchmark Nikkei 225 Stock Average lost 38.22 points, or 0.4 percent, to trade at 9,646.59 while the broader Topix index was down 1.74 points, or 0.21 percent, at 844.32.

Overnight, the dollar hit a fresh 15-year low against the yen, falling to 82.11 yen in New York amid growing speculation that the US Federal Reserve will implement further monetary easing to support the economic recovery.

To address the yen’s advance and the slowing of the country’s economic recovery, the Japanese government decided Friday to spend 5.05 trillion yen ($61.3 billion) on a fresh stimulus package.

On currency markets at 9 a.m. (0000 GMT), the dollar traded at 82.35-37 yen, down from Thursday’s 5 p.m. quote of 82.42-45 yen.

The euro traded at 1.3924-3925 dollars, down from $1.3983-3986 Thursday, and at 114.67-70 yen, down from 115.27-31 yen.

A stronger yen makes Japanese exports less competitive and erodes overseas profits when the revenues are repatriated.

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