Japanese shares dropped 1 per cent Friday morning as sentiment was hurt by the yen's rise against the euro amid persistent worries about the European debt crisis, dpa reported. The benchmark Nikkei 225 Stock Average lost 87.39 points, or 1.03 per cent, to 8,401.32 while the broader Topix index was down 7.24 points, or 0.98 per cent, at 729.04. Export-oriented issues fell as the yen climbed against the euro, standing in the upper-98 yen to the European currency. Overnight, the euro briefly hit a fresh 11-year low of 98.46 yen in New York trading. The yen's strength makes Japanese goods more expensive overseas and hurts repatriated earnings. On currency markets at 11:30 am (0230 GMT), the dollar traded at 77.19-20 yen, up from Thursday's 5 pm quote of 76.77-78 yen. The euro was quoted at 98.75-78 yen, down from 99.29-33 yen Thursday, and at 1.2794-2796 dollars, down from 1.2934-2935 dollars.
