国际英语新闻：Nikkei closes down 2.04% at fresh 7-month low

TOKYO, July 1 (Xinhua) -- Tokyo stocks fell Thursday with Nikkei stock average slumping to a fresh seven-month closing low as a strong yen continued to chip away at export-related issues and mounting concerns over the global economic recovery ensured investors remained close-fisted.

The 225-issue Nikkei Stock Average declined 191.04 points, or 2. 04 percent, from Wednesday to 9,191.60, marking a fifth straight day of negative closes and the lowest finish since late November.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 13.03 points, or 1.55 percent, to 828.39, its lowest close since Nov. 27.

Brokers said that tentative buying in the morning was encouraged by a positive report released by the Bank of Japan (BOJ) before the opening bell showing that sentiment among Japan's largest manufacturers improved for the fifth straight quarter during the three months through June from the previous quarter, with the overall reading marking a two-year high.

However the yen's appreciation against the U.S. dollar, following an overnight dip on Wall Street, coupled with China's worse-than-expected purchasing managers' index for June, dampened investor sentiment and higher stocks weren't sought, analysts said.

"The market appears to have more room to fall even though some technical indicators are overstretched," said Yutaka Miura, a senior technical analyst at Mizuho Securities.

"It's hard to think the Japanese stock market will be able reverse course and start climbing on its own. There needs to be a halt to the advance in the yen and the falls in U.S. stocks. Worries about a slowdown in the economy and strengthening in the yen are working against exporters."

The yen rose to as much as 107.50 against the euro today from 108.15 Wednesday at the close of trading and reached 88.08 from 88. 55 against the U.S. dollar, much to the consternation of Japanese exporter firms who rely on a weaker yen to maximize profits when repatriated.

"The (BOJ) Tankan report helped underpin the market earlier, but it was overwhelmed by external factors," said one local analyst.

"The dollar's current levels against the yen are also a turnoff for investors."