Tokyo stocks fell sharply Thursday morning as technology issues were sold, tracking losses in their counterparts on Wall Street overnight, with investor sentiment dented after a powerful earthquake struck central Japan on New Year's Day.

The 225-issue Nikkei Stock Average fell 415.59 points, or 1.24 percent, from Friday to 33,048.58. The broader Topix index was down 2.16 points, or 0.09 percent, at 2,364.23.

Japanese financial markets were closed from Monday to Wednesday due to the New Year holidays.

On the top-tier Prime Market, decliners were led by electric appliance, precision instrument and service issues.

The U.S. dollar strengthened to the mid-143 yen range in Tokyo, as the yen was sold on a view that the powerful earthquake that shook the Noto Peninsula and surrounding areas in central Japan Monday has reduced the likelihood of the Bank of Japan shifting from its ultraloose monetary policy at its January meeting, some analysts said.

At noon, the U.S. dollar fetched 143.47-48 yen compared with 143.25-35 yen in New York at 5 p.m. Wednesday.

The euro was quoted at $1.0918-0922 and 156.64-71 yen against $1.0918-0928 and 156.41-51 yen in New York late Wednesday afternoon.

Tokyo stocks fell sharply at the start of trading, with the Nikkei briefly falling over 2 percent. Sentiment was negative after the New Year holidays were marred by the powerful quake, and U.S. technology shares' losses on rising interest rates overnight drove selling of their Japanese counterparts.

Interest rates climbed in New York as the benchmark oil futures contract gained ground on rising tensions in the Middle East. Concerns over supply chain disruption in the Red Sea rose after reports that Iran sent a warship to the waters on Monday in response to U.S. forces opening fire on pro-Iranian Houthi rebels who were attacking a cargo ship.

"Falls were led primarily by losses on U.S. markets and geopolitical concerns, while investors took a wait-and-see approach over the effect of the earthquake," said Maki Sawada, a strategist in the Investment Content Department of Nomura Securities Co.

Losses were limited, however, as the tensions in the Middle East meant stocks in marine transportation firms drew buying, while exporters were bought amid expectations that the yen could stay weaker for longer following the earthquake.

Heavyweight technology stocks plummeted in Tokyo, with semiconductor testing equipment maker Advantest down 251 yen, or 5.2 percent, to 4,546 yen, while Tokyo Electron fell 1,255 yen, or 5.0 percent, to 24,000 yen.

Among risers, marine transportation firm Kawasaki Kisen soared 464 yen, or 7.7 percent, to 6,514 yen, and Nippon Yusen jumped 339 yen, or 7.8 percent, to 4,710 yen, amid expectations that freight costs could rise on the instability in the Red Sea.

==Kyodo

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