Tokyo stocks fell Thursday morning, with exporters leading the retreat amid a firm yen and investors locking in gains after surges the previous day following the Bank of Japan's decision to maintain its ultraeasy monetary policy.

The 225-issue Nikkei Stock Average fell 322.50 points, or 1.20 percent, from Wednesday to 26,468.62. The broader Topix index was down 14.71 points, or 0.76 percent, at 1,920.22.

Export-oriented transportation equipment and machinery issues were among the worst performers.

The U.S. dollar remained weak in Tokyo after falling to the mid-127 yen level in New York overnight, as weaker-than-anticipated U.S. data stirred expectations of slower interest rate hikes and erased gains made the previous day after the BOJ decision.

Concern over a potential recession in the United States spread after the December readings of retail sales and industrial output showed the world's largest economy was slowing, sending Treasury yields lower and prompting dollar selling, dealers said.

At noon, the dollar fetched 128.42-44 yen compared with 128.89-99 yen in New York and 130.24-27 yen in Tokyo at 5 p.m. Wednesday.

The euro was quoted at $1.0792-0796 and 138.59-66 yen against $1.0790-0800 and 139.08-18 yen in New York, and $1.0827-0828 and 141.03-07 yen in Tokyo late Wednesday afternoon.

On the Japanese stock market, investors sold exporters and other shares on the view that the yen's appreciation will erode their profits earned overseas. The Nikkei's over 2 percent jump Wednesday also provided a chance for investors to cash in gains, analysts said.

"The firm yen weighed on stocks while investors sold shares that rose yesterday," said Toshikazu Horiuchi, equity strategist at IwaiCosmo Securities Co. "A sharp fall in U.S. long-term interest rates had a big impact on the yen's rebound."

Exporters such as automakers and tech companies fell, with Nissan Motor sliding 14.1 yen, or 3.2 percent, to 421.2 yen and electric component maker TDK losing 120 yen, or 2.7 percent, to 4,380 yen.

Bucking the trend, inbound tourism-related shares were higher after government data showed the number of foreign visitors to Japan in 2022 expanded more than 15-fold from the previous year.

Department store operator Takashimaya rose 54 yen, or 3.2 percent, to 1,756 yen. Railway operator Central Japan Railway gained 130 yen, or 0.8 percent, to 15,805 yen.

==Kyodo

© Kyodo News International, Inc., source Newswire