Nikkei slips 0.9 pct as exporters fall on dlr/yen

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By Aiko Hayashi

TOKYO, March 26 (Reuters) - Japan's Nikkei average fell 0.9 percent on Wednesday as exporters such as Canon Inc (7751.T) slipped on a stronger yen while many shares sagged after the date passed giving investors the right to the latest dividends.

One bright spot was commodities-related shares such as gold and copper producer Sumitomo Metal Mining Co Ltd (5713.T) and trading company Mitsubishi Corp (8058.T). They jumped following a recovery in oil and metal prices. CLc1 XAU= HGK8 MZN3

Kenichi Hirano, operating officer at Tachibana Securities, said weak U.S. economic data and a stronger yen versus the dollar have cast a cloud over the market, though it was also pausing after big gains.

"Investors are worried there could be another dollar sell-off," he said.

Data on Tuesday showed U.S. consumer confidence in March plunged to a five-year low, raising the spectre consumers cutting back in the United States, one of the major destinations for Asian exports. [ID:nN25381724].

It also hurt the dollar, in turn fuelling a rebound in gold and commodity prices after last week's sell-off.

In Japan, Tuesday was also the last day on which investors buying many Japanese stocks could still receive dividends for the year ending on March 31.

Fujio Ando, senior managing director at Chibagin Asset Management, said market sentiment was not particularly weak, considering the dividend impact took 103-105 points off the Nikkei.

The benchmark Nikkei .N225 fell 112.42 points to 12,632.80 by midday. On Tuesday it rose 2.1 percent to post its highest finish since March 12.

The broader TOPIX index finished morning trade down 1 percent or 11.82 points at 1,231.16.

The dollar slipped to 99.75 yen JPY= from near 100.00 yen, but still off last week's low of 95.77 yen.

EXPORTERS DOWN

Many auto and tech exporters have assumed a currency rate of 105 yen to the dollar in making profit forecasts.

Investors have fretted over the strength of the yen against the dollar as it makes Japanese goods less competitive in overseas markets and cuts into profits made abroad when brought back to Japan.