Tokyo  - Stocks in Tokyo fell in Thursday morning trading when investors sold shares to lock in profits from the previous day's gains.

The benchmark Nikkei 225 Stock Average fell 79.02 points, or 1.07 per cent, to 7,297.1 after closing 4.55 per cent higher Wednesday.

The broader Topix index of all first-section issues also fell 15.93 points, or 2.21 per cent, to 706.35, a day after rising 2.67 per cent after surges on Wall Street and hopes for stabilization in the financial industry.

Stocks fell as the government also released revised gross domestic product figures that showed the world's second-largest economy shrank an annualized 12.1 per cent in the fourth quarter, better than initial figures that had projected a 12.7-per-cent contraction.

Nonetheless, in light of an unprecedented drop in exports - 46.3 per cent in January - Japan's economy has shrunk the most since the oil crisis 35 years ago.

The economic decline is the worst for Japan since the end of World War II. Economists said the export- dependent country would only recover when demand from its biggest customers in the United States and China recovers.

On currency markets at 9 am (0000 GMT), the dollar traded at 97.21-26 yen, down from Wednesday's 5 pm quote of 98.55-58 yen.

The euro traded at 1.2803-08 dollars, up from late Wednesday's quote of 1.2658-60 dollars, and at 124.48-53 yen, down from 124.76-80 yen. (dpa)