Japanese share prices fell 0.46 per cent in morning trade on Friday as investors pocketed gains a day after the market hit the highest level for over two months, dealers said.

They said modest losses overnight on Wall Street added to the cautious mood here.

The Tokyo Stock Exchange's benchmark Nikkei-225 index of leading shares lost 79.64 points to 17,379.34 by the lunch break.

The broader Topix index of all first-section shares dipped 11.14 points or 0.66 per cent to 1,666.38.