Japan's benchmark Nikkei 225 Stock Average fell 1.8 per cent Thursday morning as export-oriented issues were dragged down by a stronger yen amid growing fears about Spanish banks, according to dpa. The Nikkei lost 158.62 points, or 1.84 per cent, to trade at 8,474.57 at the end of the morning session at 11:30 am (0230 GMT). The broader Topix index was down 9.92 points, or 1.37 per cent, at 713.7. Exporters were down as the euro fell below 97.50 yen, the lowest level in four and a half months. The European currency weakened after Spanish borrowing costs reached a record high amid market speculation that the country will need an international bailout. A stronger yen makes Japanese goods more expensive and erodes repatriated earnings. Shares in Canon Inc plummeted 4.44 per cent, construction machinery maker Komatsu Ltd dropped 3.58 per cent, Honda Motor Co fell 2.87 per cent and Toyota Motor Corp was down 2.11 per cent. Japan's industrial production edged up a seasonally adjusted 0.2 per cent in April from the previous month for the second straight month of rise, the government said Thursday. On currency markets at 11:30 am, the euro traded at 97.43-46 yen, down from Wednesday's 5 pm quote of 98.81-85 yen, and at 1.2368-2372 dollars, down from 1.2453-2455 dollars. The dollar was quoted at 78.76-78 yen, down from 79.35-37 yen late Wednesday.
