Tokyo stocks were lower Wednesday morning, weighed down by an overnight fall on Wall Street and the locking in of gains after a four-day rally of the Nikkei index.

The 225-issue Nikkei Stock Average fell 289.48 points, or 1.07 percent, from Tuesday to 26,759.99. The broader Topix index was down 14.64 points, or 0.77 percent, at 1,892.74.

On the top-tier Prime Market, decliners were led by rubber product, marine transportation, and glass and ceramic product issues.

The U.S. dollar remained firm in the lower 136 yen range as the unit was bought in anticipation of a rise in U.S. Treasury yields, dealers said.

At noon, the dollar fetched 136.10-11 yen compared with 136.10-20 yen in New York and 135.75-76 yen in Tokyo at 5 p.m. Tuesday.

The euro was quoted at $1.0527-0531 and 143.27-34 yen against $1.0516-0526 and 143.28-38 yen in New York and $1.0584-0586 and 143.68-72 yen in Tokyo late Tuesday afternoon.

Stocks were lower from the outset, with the Nikkei index dipping below the 27,000 mark as investors secured profits after the benchmark soared about 900 points over four trading days.

Sentiment was dampened by concerns over the U.S. economy after data from the Conference Board showed consumer expectations in June plunged to 66.4 to hit their lowest level since March 2013 from 73.7 in May.

The weaker-than-expected data came as the U.S. Federal Reserve attempts to tame soaring inflation via aggressive rate hikes, which will lead to higher borrowing costs for households and businesses.

"The sharp decline in consumer expectations further increased fears over inflation in the United States," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities Co.

"The Fed has been clear about pursuing its hawkish stance despite ongoing fears over a potential recession" in the world's largest economy, he added.

But the weak yen acted as a buffer to the market's fall, briefly lifting some exporters in the morning, Fujito said.

Among Prime Market issues, declining issues outnumbered advancers 1,164 to 583, while 87 ended the morning unchanged.

Stocks were weighed down by a fall in some chip-related shares after the technology-heavy Nasdaq index sank nearly 3 percent overnight.

Tokyo Electron dropped 1,440 yen, or 3.0 percent, to 46,110 yen, Advantest declined 160 yen, or 2.1 percent, to 7,470 yen, and Taiyo Yuden fell 175 yen, or 3.5 percent, to 4,775 yen.

Bucking the downward trend, Sugi Holdings soared 370 yen, or 6.7 percent, to 5,890 yen, a day after the drug store chain said it would buy back up to 10 billion yen ($73 million) worth of shares.

==Kyodo

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