By DPA,
Tokyo : Japanese shares dropped in Wednesday morning trading on mounting tensions on the Korean Peninsula and renewed concern over the debt crisis in Europe.
The benchmark Nikkei 225 Stock Average lost 75.76 points, or 0.75 percent, to trade at 10,039.43. The broader Topix index was down 7.04 points, or 0.8 percent, at 868.44.
Tokyo stocks opened lower, falling sharply below 10,000 briefly after overnight heavy losses in US and European markets. But the Nikkei recovered some of the earlier losses.
North Korea fired artillery shells Tuesday at a South Korean island near their disputed western sea border. South Korea returned fire and both warned of massive retaliation if there were further attacks.
Investors also feared the European debt problems could spread after the Irish government was forced to accept a bailout, prompting the government to face imminent collapse.
The Tokyo market was closed Tuesday for a national holiday.
On currency markets at 9 a.m. (0000 GMT), the dollar traded at 83.26-29 yen, up from Monday’s 5 p.m. quote of 83.41-43 yen.
The euro traded at 1.3386-3388 dollars, plummeting from 1.3731-3733 dollars Monday, and at 111.46-49 yen, down sharply from 114.53-57 yen.