Nikkei falls 2.4 pct to 6-wk low, machine data hurts
* Nikkei posts sixth straight day of losses
* Exporters dragged lower by strong yen, economy doubts
* Machinery stocks stung by unexpected fall in May orders
* First section daily trading volume moderate
By Shinichi Saoshiro
TOKYO, July 8 (Reuters) - Japan's Nikkei average fell 2.4 percent to a six-week closing low on Wednesday, hurt by an unexpected slide in domestic machinery orders and as the yen rose to seven-week highs against the dollar on talk of more stimulus for the U.S. economy.
Komatsu (6301.T) and other machinery makers dropped after Japan's core private-sector machinery orders fell 3.0 percent in May from the previous month, suggesting a recovery in capital spending may be delayed. [ID:nT292365]
Market analysts say the equity market has been going through a reality check after data on Thursday showed U.S. employers had shed nearly half a million jobs in June with the unemployment rate jumping to 9.5 percent, the highest in nearly 26 years. [ID:nN01210643]
"Market sentiment has deteriorated at a faster-than-expected pace following the weak U.S. employment data and the adjustment phase could be a long drawn-out one," said Takashi Kamiya, chief economist at T&D Asset Management.
The benchmark Nikkei .N225 lost 227.04 points to 9,420.75, its lowest close since May 26.
Trade was moderate on the Tokyo exchange's first section, with 2.1 billion shares changing hands, in line with last week's daily average. Declining stocks outnumbered advancing ones by more than 7 to 1.
Analysts said selling by some short-term investors accelerated after the Nikkei touched its 13-week moving average of around 9,450.
The broader Topix fell 2.3 percent to 888.54.
MACHINERY MAKERS, EXPORTERS HURT
Nervousness also prevailed ahead of earnings from aluminium producer and industry bellwether Alcoa (AA.N) which kicks off the U.S. quarterly earnings season.
An adviser to President Barack Obama said on Tuesday the United States should be planning for a possible second round of fiscal stimulus to further prop up the economy after the $787 billion rescue package launched in February. Continued...

