Nikkei topples from 4-mth high, slowdown worries outweigh BOJ action

* Effect of BOJ easing seen as short-lived
* Worries about China slowdown persist
* JAL extends gains after public re-listing
* NTT climbs on share buyback

By Sophie Knight
TOKYO, Sept 20 (Reuters) - Japan's Nikkei share average
dropped in early trade on Thursday, pulling back from a
four-month closing high hit the previous day when the Bank of
Japan eased monetary policy and amid caution ahead of data from
China later in the session.
Riskier assets boosted by the BOJ's decision on Wednesday
fell as concerns about a persistently strong yen and flagging
global growth returned to the fore and investors sought safety
in defensives such as communications and pharmaceutical firms.
The BOJ said on Wednesday it would expand its asset buying
and loan programme by 10 trillion yen ($127.21 billion) to 80
trillion yen to bolster Japan's export-driven economy as it
struggles with flagging global demand.
"I don't think there's going to be as big an effect on
stocks this time as their "Valentine easing"," said Yoshihiko
Tabei, chief analyst at Kazaka Securities, referring to the
BOJ's unexpected easing of monetary policy on February 14.
"The yen is a lot stronger now and the outlook for the
global economy is bleaker. They also didn't mention deflation."
The Nikkei dropped 0.6 percent to 9,189.67 after
hitting a four-month closing high of 9,232.21 on Wednesday after
the BOJ's announcement.
The mining sector, seen as particularly sensitive
to economic trends, lost 1.8 percent, while retailers,
, which are largely shielded from the downside of a
strong yen, gained 0.6 percent.
Adding to the gloom, Japanese manufacturers' sentiment hit
its lowest since February, a Reuters poll showed, while August
exports fell 5.8 percent from a year earlier, down for a third
straight month as a slowdown in China and Europe crimp demand.

Investors are awaiting the HSBC Purchasing Managers' Index
for China due later on Thursday, which could add to concerns
about shrinking revenue from China for Japanese firms after
several closed factories and stores in the country this week due
to protests sparked by a territorial dispute.
"There are few positive incentives to push the market up
today, but just how weak it gets will be determined by how bad
the China (purchasing managers' index) is," said Toshiyuki
Kanayama, a senior market analyst at Monex.
Komatsu Ltd, a construction machinery maker with
high exposure to China, fell 0.8 percent, while industrials
robotics maker Fanuc Ltd lost 0.9 percent on concerns
over its dependence on the Chinese market.
Gainers included Nippon Telegraph and Telephone Corp (NTT)
, which climbed 5.8 percent after the company said it
plans to buy back up to 150 billion yen ($1.9 billion) worth of
its own shares, or 3.4 percent of all shares issued, excluding
treasury stocks.
Nidec Corp also ran against the market, putting on
1 percent after the Nikkei daily said it would buy U.S. motor
makers Kinetek and Avtron Industrial for about $500 million in
cash and bank loans.
Japan Airlines Co Ltd extended gains after
Wednesday's public re-listing, rising 0.7 percent as the price
for crude slumped to a one-month low of $91.25 on the
back of Saudi efforts to tame prices and a massive rise in U.S.
crude inventories.
Japan Airlines was the most-traded stock on the main board by
turnover, while rival All Nippon Airways Co Ltd slipped
0.6 percent after Nomura Securities cut its price target on the
carrier to 190 yen from 260 after its new share issue in July.
The broader Topix index dropped 0.3 percent to
762.54.