Tokyo stocks sink below 9,700 in morning session

Tokyo stocks closed the morning session lower Thursday amid a global stock downtrend driven by concerns about the economic outlook. The Nikkei Stock Average fell 92 points, or 0.94%, to 9,727.99. The benchmark index temporarily sank below 9,700 to reach its lowest point since March 8, when it hit 9,659. Weak demand in an overnight auction for Spanish government bonds rekindled worries over Europe's debt problems, which weighed on markets in the region. The same jitters prompted investors to avoid risks and sell U.S. stocks. In Japan, financial issues declined in early trade on anxiety over Europe's debt problems and expected sell-offs by foreign investors. Machinery stocks also lost ground due to worries about China's economy. Japanese stocks were also dragged down by the lower opening of Hong Kong stocks. The Nikkei average trimmed its losses toward the end of morning trade, supported by dip-buying. The broader Topix index continued its slide, falling 8.23 points to 827.13.