Tokyo  - Stocks in Tokyo fell Wednesday after an overnight drop on Wall Street, following lower-than-predicted US housing starts that pointed to a still-struggling housing market there.

Investors in Japan sold shares to lock in profits from the previous day's one-month closing high as they worried that stock prices had risen faster than the pace of the economic recovery.

The benchmark Nikkei 225 Stock Average fell 31.58 points, or 0.31 per cent, in morning trading to 10,305.26.

Tokyo's broader-based Topix index was also down 3.44 points, or 0.38 per cent, at 910.01.

On currency markets at 9 am (0000 GMT), the dollar traded at 90.78-84 yen, up from Tuesday's 5 pm quote of 90.29-32 yen.

The euro traded at 1.4931-32 dollars, down from 1.4960-63 dollars Tuesday, and at 135.57-59 yen, up from 135.10-14 yen. (dpa)