Around the World's Markets: Tokyo

THE CONTINUING strength of the yen against the dollar dragged down Japanese shares yesterday. The Nikkei 225 ended down 171.23 points - almost 1 per cent - at 17,631.25.

The fall was curbed by gains in banks, which attracted buying amid restructuring hopes flowing out of the country's three-way banking merger. "The rapid rise in the yen is undermining the stock market," said one trader. "But at the same time investors' attention is turning to issues that get little negative impact from the higher yen, such as financial stocks."