TOKYO (Kyodo) -- Tokyo stocks fell Friday morning as uncertainty over the outcome of Japan's general election kept investors on edge, while exporters drew selling on a stronger yen.

The 225-issue Nikkei Stock Average dropped 371.50 points, or 0.97 percent, from Thursday to 37,771.79. The broader Topix index was down 25.74 points, or 0.98 percent, at 2,609.83.

The U.S. dollar remained mostly weak in the upper 151 yen zone in Tokyo following a pause in the rise of U.S. long-term interest rates and a warning by the Japanese finance minister about excessive currency movements amid the yen's recent sharp depreciation.

At noon, the dollar fetched 151.83-84 yen compared with 151.79-89 yen in New York and 152.12-14 yen in Tokyo at 5 p.m. Thursday.

The euro was quoted at $1.0824-0828 and 164.34-41 yen against $1.0822-0832 and 164.35-45 yen in New York, and $1.0795-0796 and 164.22-26 yen in Tokyo late Thursday afternoon.

Stocks fell from the outset as a risk-off mood prevailed ahead of Japan's House of Representatives election on Sunday, while the firmer yen also acted as a drag on a wide range of export-oriented issues, as the yen's appreciation reduces the profits of exporters when repatriated.

Investors were wary of political uncertainty as recent media reports have suggested that the ruling Liberal Democratic Party and its coalition partner could struggle to retain a majority in the powerful lower chamber, brokers said.

"If there is a major shift, such as the formation of a government centered around the (main opposition) Constitutional Democratic Party of Japan, it could create turmoil in the stock market," said Kazuo Kamitani, a strategist in the Investment Content Department of Nomura Securities Co.