Stocks in Tokyo fell more than 2 per cent Wednesday following heavy losses on Wall Street as sentiment was hurt by the yen's strength against the dollar and growing concerns about the US economy. The benchmark Nikkei 225 Stock Average lost 207.45 points, or 2.11 per cent, to close at 9,637.14 while the broader-based Topix index was down 17.21 points, or 2.04 per cent, at 826.75. Export-oriented issues were dragged down as the value of the dollar remained in the lower-77-yen range, near its all-time low of 76.25 yen marked on March 17. A stronger yen makes Japanese goods more expensive overseas and erodes repatriated earnings, according to a report of the German Press Agency "DPA". Overnight, the Dow Jones Industrial Average plunged 2.2 per cent despite a deal to raise the US debt limit to avert a default. On currency markets at 3 pm (0600 GMT), the dollar traded at 77.14-15 yen, down from Tuesday's 5 pm quote of 77.22-24 yen. The euro traded at 1.4212-4215 dollars, up from 1.4190-4192 dollars Tuesday, and at 109.65-67 yen, up slightly from 109.58-62 yen.
