Tokyo - Tokyo stocks declined Tuesday as a strong yen and concerns about government fiscal policy wiped out early gains from Wall Street's rally and rising resource stocks. The benchmark 225 Nikkei stock average lost 61.25 points, or 0.63 per cent, to 9,729.23.
The broader Topix index of all first section issues was down 3.42 points, or 0.4 per cent, to 857.0.
Resource-related shares climbed on higher oil and gold prices. But the gains were overwhelmed by the steadily falling US dollar. A weaker dollar erodes Japanese exporters' profits repatriated from overseas.
Traders also expressed worries about the fiscal policy of the new government, led by the left-leaning Democratic Party of Japan, amid concerns over public investment and economic stimulus.
On currency markets, the dollar traded at 89.06-10 yen, down from Monday's 5 pm quote of 89.56-57.
The euro was at 1.4953-57 dollars down from 1.4983-84 dollars the previous day, and at 133.15-29 yen, down from 134.19-23 yen.
