Tokyo  - Tokyo stocks fell in early trading on Wednesday on profit-taking, breaking a two-day climb.

The benchmark Nikkei 225 Stock Average dipped by 0.73 per cent, or 61.58 points to 8,426.72 by mid-trading, reversing earlier gains.

The broader Topix index of all first-section issues was almost flat, dropping 0.27 points, or 0.03 per cent, to 812.45.

Traders also reacted to reports that Japan's overseas exports dropped by 49.4 per cent in February year-on-year, with consumer electronics titles contributing most to the slump.

Japan logged its first trade surplus in five months as a sharp drop in imports canceled out record drops in exports.

On currency markets at 9 am (0000 GMT), the dollar traded slightly lower at 98.30-35 yen, compared with Tuesday's 5 pm quote of 98.28-31 yen.

The euro traded at 1.3477-82 dollars, down from from late Tuesday's quote of 1.36-03-05 dollars, and at 132.50-55 yen, compared to 133.71-75 yen the previous day. (dpa)