Tokyo  - Tokyo stocks declined Tuesday morning on a strong yen and concerns about government fiscal policy wiped out early gains from Wall Street's rally and rising resource stocks.

The 225-issue Nikkei Stock Average lost 13.76 points, or 0.14 percent, to 9,777.42. The broader Topix index of all first section issues was down 3.26 points, or 0.38 percent, to 857.16.

Resource-related shares climbed on higher oil and gold prices. But the gains were overwhelmed by the steadily falling US dollar, which was trading at around 89. A weaker dollar erodes exporter profits repatriated from overseas.

Traders also expressed worries about the new government fiscal policy, amid concerns over public investment and economic stimulus. (dpa)