Japan stocks down in morning trade

Japanese stocks declined in Monday morning trading as export-oriented issues were down with the dollar still hovering around the mid-85-yen level and the euro falling against the yen.

The Nikkei 225 Stock Average lost 38.37 points, or 0.42 per cent, to trade at 9,141.01 while the broader Topix index was down 3.29 points, or 0.4 per cent, at 826.3.

Prime Minister Naoto Kan and Bank of Japan Governor Masaaki Shirakawa talked over the phone Monday, discussing currency issues, and agreed to closely watch financial markets, the Kyodo News agency reported.

On currency markets at 11 am (0200 GMT), the dollar traded at 85.44-46 yen, up slightly from Friday's 5 pm quote of 85.34-35 yen.

The euro traded at 1.2718-2720 dollars, down from 1.2818-2819 dollars Friday, and at 108.66-70 yen, down from 109.39-43 yen. A stronger yen makes Japanese exports less competitive and erodes overseas profits when the revenues are repatriated.