Tokyo stocks fall more than 2% in morning trade

Tokyo stocks fell more than two percent in morning trade on Thursday, weighed down by a sharp surge in the yen's value following Japanese and US central bank decisions.

The benchmark Nikkei 225 index was down 2.18 percent, or 851.32 points, at 38,250.50 about 20 minutes after the opening bell, while the broader Topix index was down 2.25 percent, or 62.80 points, at 2,731.46.

The Japanese market "is expected to start with losses due to the stronger yen, with traders nervously watching the dollar-yen exchange rate", senior market analyst Toshiyuki Kanayama of brokerage Monex said.

Traders are also awaiting Toyota's earnings report due later in the day, he added.

The dollar fetched 149.56 yen, down from 149.88 yen in New York late Wednesday after the US Federal Reserve signaled it could cut interest rates as soon as September. The dollar-yen rate was 153.09 yen on Tuesday.

Also on Wednesday, 31 July, the Bank of Japan further unwound its massive monetary easing program by raising interest rates for just the second time in 17 years.

Source: AFP