Nikkei slides as economic worry spreads, yen rises

(Updates to midmorning)

TOKYO, July 2 (Reuters) - Japan's Nikkei stock average slid 0.9 percent on Wednesday, heading for a losing streak not seen in more than 40 years, as growing worries about the global economy battered sentiment and a slightly weaker dollar dented exporters such as Canon Inc (7751.T).

Kirin Holdings Co (2503.T) fell after the Nikkei business daily said the Japanese brewer would likely report a 28 percent rise in its January-June profit, missing its own forecast of a 38 percent jump, due to weaker-than-expected growth at its soft drink unit. "Though Wall Street rose yesterday, the fundamental problems with the U.S. economy remain, and it's hard to imagine that we'll see a rebound after jobs data comes out on Thursday," said Norihiro Fujito, general manager at Mitsubishi UFJ Securities.

"The economies of a lot of emerging markets, which Japan counted on even if the U.S. was doing poorly, are now being hit as well. This slowing, and inflation, may have a delayed impact on Japan, but an impact is unavoidable," he said.

Investor window-dressing that may have artificially supported the market just before the end of the first half of the calendar year on Monday has also evaporated, he added.

The benchmark Nikkei .N225 shed 141.59 points to 13,321.61, heading for its tenth straight day of losses -- a losing streak unseen since earlier 1965.

The broader Topix was down 0.7 percent at 1,311.43.

Canon slid as the dollar edged below 106 yen JPY=, shedding 1.9 percent to 5,230 yen and becoming the biggest drag on the Nikkei 225 by volume weight. Honda Motor Corp (7267.T) fell 1.1 percent to 3,600 yen.

Shippers sank as freight rates fell, with the Baltic Dry Exchange .BADI down 2.19 percent.

Nippon Yusen KK (9101.T), Japan's largest shipping firm, fell 3.9 percent to 988 yen and Kawasaki Kisen (9107.T) slid 3.1 percent to 971 yen. Mitsui OSK Lines (9104.T) was down 3.1 percent at 1,448 yen. Kirin fell 3.2 percent to 1,589 yen. (Reporting by Elaine Lies; Editing by Brent Kininmont)