Japanese stocks dropped more than 1 per cent Thursday after US and European markets fell and investors sold shares on the home market to lock in profits after recent gains. According to dpa, the benchmark Nikkei 225 Stock Average lost 119.79 points, or 1.13 per cent, to close at 10,437.31 while the broader Topix index was down 9.68 points, or 1.03 per cent, at 927.19. Tokyo stocks opened lower as banks were hurt by poor earnings from US investment banking firm Goldman Sachs Group Inc. US stocks fell Wednesday after Goldman Sachs reported shrinking profits in the fourth quarter and housing construction figures disappointed. Investor sentiment was also hurt by Shanghai's plunge in the afternoon. The Shanghai Composite Index had plummeted 2.3 per cent by 1:54 pm (0554 GMT). Export-oriented shares were also down as the yen was still hovering around the lower 82-yen range. A stronger yen makes Japanese goods more expensive abroad and erodes overseas earnings when the revenues are repatriated. On currency markets at 3 pm (0600 GMT), the dollar traded at 82.10-13 yen, little changed from Wednesday's 5 pm quote of 82.05-07 yen. The euro traded at 1.3458-3461 dollars, down from 1.3484-3485 dollars Wednesday, and at 110.50-54 yen, down from 110.64-68 yen.
