Tokyo stocks open down 1.24%

Tokyo stocks opened down 1.24 percent on Friday amid fears of contagion in the European sovereign debt crisis. The benchmark Nikkei 225 index at the Tokyo Stock Exchange opened 105.47 points lower at 8,374.16. "Deepening European sovereign-debt problems weigh on stocks globally," said Hiroichi Nishi, general manager of the equity division at SMBC Nikko Securities. Still, the downside for the Nikkei may be limited ahead of the weekend and as its valuation is becoming more attractive, Nishi told Dow Jones Newswires. Spain was forced to offer euro-era-high average yields at its 10-year government bond auction Thursday. But it insisted it has no need for an international debt bailout as borrowing costs shot to the record highs, raising the stakes days before a general election. France also had to pay higher prices for debt at its auction. In Italy, Prime Minister Mario Monti laid out radical economic reforms on Thursday aimed at cutting Rome's huge debt mountain, boosting growth and preventing Italy from dragging down the eurozone. The euro fetched $1.3452 and 103.53 yen in early Asian trade on Friday, marginally down from $1.3457 and 103.60 yen in New York late Thursday. The dollar was almost flat against the Japanese currency, trading at 76.97 yen. US stocks plunged Thursday as fears over the contagion in the eurozone crisis trumped some mildly positive data on the US economy. The Dow Jones Industrial Average closed down 1.13 percent at 11,770.73.