TOKYO (Kyodo) -- Tokyo stocks dropped Monday as tensions between Japan and China hit retail and tourism issues, while growing concerns over the deterioration of Japan's fiscal health under Prime Minister Sanae Takaichi prompted selling of the yen and the debt.

The 225-issue Nikkei Stock Average ended down 52.62 points, or 0.10 percent, from Friday at 50,323.91. The broader Topix index finished 12.28 points, or 0.37 percent, lower at 3,347.53.

On the top-tier Prime Market, decliners were led by securities house, air transport and retail issues.

The U.S. dollar mostly hovered in the upper 154 yen range on yen selling amid speculation that Japan's fiscal health -- the worst among Group of Seven countries -- will further worsen under Takaichi, who is expected to increase spending to carry out her pledge to spur economic growth, dealers said.

At 5 p.m., the dollar fetched 154.67-69 yen compared with 154.47-57 yen in New York and 154.67-69 yen in Tokyo at 5 p.m. Friday.

The euro was quoted at $1.1613-1614 and 179.63-67 yen against $1.1616-1626 and 179.55-65 yen in New York and $1.1632-1634 and 179.92-96 yen in Tokyo late Friday afternoon.

With expectations rising that the government may increase bond issuance to fund stimulus measures likely to surpass 17 trillion yen ($110 billion), the yield on the benchmark 10-year Japanese government bond rose to its highest level since June 2008.

It ended at 1.730 percent, up 0.030 percentage point from Friday's close.

On the stock market, heavyweight Fast Retailing, Uniqlo chain operator, major department stores, and air transport issues all fell after China warned its citizens against visiting Japan following Takaichi's remarks about a potential contingency involving Taiwan, brokers said.

"Shares of companies with a relatively high percentage of sales in China may also be seen as a risk by the market," as Japan and China continue to trade barbs following Takaichi's remarks, said Maki Sawada, strategist in the Investment Content Department of Nomura Securities Co.

The downside, however, was somewhat limited, as the Nikkei briefly turned higher on buybacks after the index ended down over 900 points on Friday, while robust demand for shares related to artificial intelligence technology and data centers also helped, the brokers said.

Sawada added there was "a wait-and-see mood" ahead of the release of U.S. chip giant Nvidia Corp.'s earnings results later this week, with the focus on whether tech companies can produce sufficient returns on their massive investments in AI.