TOKYO (AP) _ Tokyo stocks retreated moderately Tuesday morning on profit-taking following the previous day's gains. The dollar was lower against the yen.

The benchmark 225-issue Nikkei Stock Average dropped 86.82 points, or 0.59 percent, to 14,633.57 at the end of the morning session. On Monday, the average closed up 405.04 points, or 2.75 percent.

The dollar bought 110.54 yen late morning, down 0.48 yen from late Monday in Tokyo and also below its late New York level of 110.57 yen.

On the stock market, investors locked in profits after Monday's surge in the Nikkei index. The market also was dampened by a 23.89-point fall in the tech-heavy Nasdaq composite index on Wall Street. The Nasdaq closed at 2,880.49.

Also in New York on Monday, the Dow Jones industrial average finished at 10,546.07, up 75.84.

The broader Tokyo Stock Price Index of all issues listed on the first section was up 0.34 points, or 0.02 percent, to 1,360.79. The TOPIX closed up 18.63 points, or 1.39 percent, the day before.

In currency dealings, the dollar slipped slightly against the yen after two U.S. reports released Monday added to growing evidence of a slowdown by the world's largest economy.

The Commerce Department said Monday that retail sales fell 0.4 percent over the summer, while the National Association of Realtors reported that existing home sales dropped by a bigger-than-expected 3.9 percent in October after a 2.3 percent fall in September.

In other currencies, the euro was traded at 94.18 yen late morning, up from 93.40 yen late Monday in Tokyo.

The yield on the benchmark 10-year Japanese government bond fell to 1.6750 percent from Monday's finish of 1.6850 percent. Its price rose 0.09 point to 101.07.

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On the Net: Tokyo Stock Exchange: http://www.tse.or.jp