Nikkei dips 0.1%, exporters slip on econ worries

By Aiko Hayashi

TOKYO (Reuters) - The Nikkei stock average dipped 0.1 percent on Monday, on course to mark its longest losing streak in more than half a century as exporters such as Sony Corp slid on worries about a global economic slowdown.

Daikin Industries Ltd dropped 3.4 percent to become the biggest drag on the benchmark Nikkei after Goldman Sachs cut its price target, citing a surprisingly weak outlook for the air conditioner maker's first quarter, hurt by slumping demand in Europe.

U.S. markets were closed on Friday for the Independence Day holiday. The Nikkei finished Friday down 0.2 percent, falling for a 12th day and marking its longest losing streak since a 15-day period in 1954.

Takahiko Murai, general manager of equities at Nozomi Securities, said it is difficult for the Japanese market to snap the losing run unless the U.S. market recovers, but that depends on whether oil prices come down.

"The Japanese economy is vulnerable to a slowdown in overseas economies as it depends on exports including exports to emerging countries," he said.

"There was a view for a while that Japanese stocks may be immune to those problems, but that is fading."

The Nikkei fell 8.43 points to end the morning session at 13,229.46, falling for a 13th day.

The broader Topix was nearly flat at 1,297.53.

Market analysts said the summit of Group of Eight (G8) wealthy nations would likely have little impact on the stock market this week.

A three-day meeting of leaders from the G8 countries starts on Monday in Hokkaido, northern Japan, with climate change, soaring food and oil prices slated to dominate the agenda.

"If they come up with measures to deal with this financial crisis, the market might may react a little bit. Otherwise, I don't expect any impact," said Katsuhiko Kodama, senior strategist at Toyo Securities.

EXPORTERS DOWN

Sony Corp shed 1.3 percent to 4,570 yen, while industrial robot maker Fanuc Ltd declined 1.6 percent to 9,660 yen.

"Investors could start buying exporters on dips with the currency trading at this level, but at the moment they don't have enough room to take that into account because of the current economic situation," said Kodama at Toyo Securities.

The dollar was steady at 106.66 yen in early Asian trade. A stronger yen curbs exporters' profits when they are brought back home.