Japanese shares dropped more than 1 per cent Thursday as export-oriented issues were pulled down by a strong yen, according to dpa.The benchmark Nikkei 225 Stock Average lost 113.5 points, or 1.25 per cent, to close at 8,943.76 while the broader-based Topix index was down 9.34 points, or 1.2 per cent, at 767.31.The yen's rise hurt major exporters such as Toyota Motor Corp, Canon Inc and Sony Corp as the Japanese currency was still valued inthe mid-76-yen level to the dollar. Toyota fell 1.68 per cent, Canon declined 1.53 per cent and Sony dropped 2.43 per cent.A stronger yen makes Japanese goods more expensive overseas and erodes repatriated earnings.Japan's exports fell 3.3 per cent in July from the same month a year ago to 5.78 trillion yen (75.5 billion dollars) for thefifth-consecutive monthly decrease in the aftermath of the March 11 tsunami and earthquake, the Finance Ministry said in a preliminaryreport.The fall in exports was led by declines in shipments of cars, semiconductors and ships while imports rose 9.9 per cent to 5.71trillion yen, the ministry said.On currency markets at 3 pm (0600 GMT), the dollar traded at 76.65-67 yen, up slightly from Wednesday's 5 pm quote of 76.59-61 yen.The euro traded at 1.4411-4412 dollars, up from 1.4389-4391dollars Wednesday, and at 110.45-48 yen, up from 110.21-25 yen