Tokyo stocks edge down by break as yen weakens

Tokyo stocks pared most of their early losses on Monday morning as the yen weakened and after Japan published upbeat economic data.

Shortly before the start of trade, Japan said its annual current account surplus jumped more than six fold in 2015 on surging exports.

Healthy returns on Japanese investments abroad also helped to contribute to the annual account surplus of 16.64 trillion yen ($142.2 billion), according to the finance ministry.

Japan's current account is the broadest measure of its trade with the rest of the world.

The figures provided a rare bright spot for Prime Minister Shinzo Abe, whose high-spending, easy-money policy blitz has struggled to cement a convincing rebound in the world's number three economy.

However, the data also reflected Japan's challenges in boosting activity at home.

The benchmark Nikkei 225 index at the Tokyo Stock Exchange -- which opened down more than one percent -- finished the morning 0.17 percent, or 29.01 points, lower at 16,790.58.

The broader Topix index of all first-section shares slipped 0.20 percent, or 2.75 points, to 1,366.22.

The Nikkei's early fall followed a heavy sell-off on Wall Street Friday as relatively strong US jobs data sparked new worries that the Federal Reserve could decide to raise rates again as soon as March.

The Fed lifted borrowing costs for the first time in more than nine years in December.

"As far as equity markets were concerned, (the jobs report) wasn't weak enough to keep the Fed stuck where it is indefinitely, but wasn't strong enough to allay fears that the economic slowdown evident in the fourth quarter might be more than temporary," National Australia Bank said in a commentary.

In share trading, Toyota fell 2.27 percent to 6,474 yen, after the world's top automaker on Friday posted strong nine-month profits, but also reported falling vehicle sales underscoring the challenges ahead in emerging markets.

The company on Monday was scheduled to stop vehicle production in Japan for a week due to a components shortage following an explosion at a supplier.

Sony dropped 2.77 percent to 2,542.5 yen and banking giant Mitsubishi UFJ fell 1.09 percent to 532.3 yen.

In forex markets, the dollar rose to 117.22 yen from 116.86 yen Friday in New York.

dhl/pb/dan