Tokyo stocks fell Thursday morning as investor sentiment was dampened after hopes faded for a U.S. stimulus deal to spur the coronavirus-hit economy.

The 225-issue Nikkei Stock Average fell 109.10 points, or 0.46 percent, from Wednesday to 23,517.63. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 7.77 points, or 0.47 percent, at 1,636.13.

Decliners were led by pharmaceutical, precision instrument, and farm and fishery issues.

The U.S. dollar fluctuated in the lower 105 yen zone after U.S. Treasury Secretary Steven Mnuchin said overnight that reaching a stimulus deal before the November presidential election would be difficult.

At noon, the dollar fetched 105.26-27 yen compared with 105.11-21 yen in New York and 105.43-44 yen in Tokyo at 5 p.m. Wednesday.

The euro was quoted at $1.1744-1744 and 123.62-63 yen against $1.1740-1750 and 123.49-59 yen in New York and $1.1741-1742 and 123.79-83 yen in Tokyo late Wednesday afternoon.

Tokyo stocks lost ground throughout the morning session, tracking an overnight fall on Wall Street.

"Investors grew cautious about the overall economic outlook as expectations for U.S. stimulus receded and (U.S.) banks' earnings (for the third quarter) turned out poor except for some," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co.

On the First Section, declining issues outnumbered advancers 1,472 to 587, while 103 ended the morning unchanged.

Chip-related issues declined following overnight losses in their U.S. peers.

Advantest fell 90 yen, or 1.6 percent, to 5,500 yen and Tokyo Electron was 295 yen, or 1.0 percent, lower at 29,185 yen.

Some Japanese retailers dropped after reporting the previous day weak earnings due to the pandemic.

Saizeriya, operator of a low-priced Italian restaurant chain, lost 142 yen, or 6.6 percent, to 1,994 yen, after reporting a net loss of 3.5 billion yen for the year through August.

==Kyodo

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