Japan's Nikkei falls 0.7 pct as investors cash out
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TOKYO, April 4 (Reuters) - Japan's Nikkei stock average fell 0.7 percent on Friday as investors locked in the market's three-day gain ahead of closely watched U.S. jobs data.
Honda Motor Co Ltd (7267.T) and Toyota Motor Co (7203.T) extended losses after Goldman Sachs joined other brokerages to cut its rating on the sector.
"We are seeing profit-taking after the three-day winning streak and ahead of jobs data," said Harushige Kobayashi, head of the research department at Maruwa Securities.
The U.S. employment report for March is due later in the day, with economists forecasting a cut of 60,000 jobs.
The Nikkei had gained nearly 7 percent since Tuesday as fears of the credit crisis spinning out of control eased following a successful capital boost by Lehman Brothers LEH.N.
"With concerns about a credit crunch having been alleviated to some degree, recently battered shares such as financials and property firms are regaining ground," said Hiroaki Osakabe, fund manager at Chibagin Asset Management.
The benchmark Nikkei .N225 ended the morning down 90.92 points at 13,298.98. The broader TOPIX fell 0.5 percent to 1,293.79.
All of Japan's three-largest banks gained, with No.2 Mizuho Financial Group (8411.T) extending gains for the fourth day, up 2.2 percent at 421,000 yen.
AUTOS IN FOCUS
Honda fell 3.3 percent to 2,980 yen and Toyota slid 2.1 percent to 5,050 yen, among the biggest drags on the Nikkei.
Goldman Sachs cut its coverage view on the autos sector to "cautious" from "neutral", citing the yen's gain against the dollar and the rise in steel prices.
The brokerage saw total U.S. demand at 15 million units in 2008, or a 7 percent decline from a year earlier, and said it had cut automakers' U.S. profit forecast given the tough market.
On Thursday, Nomura Securities cut its rating on the sector to "neutral" from "bullish".
But Chibagin Asset Management's Osakabe said the market had already priced in a negative forex impact when the dollar fell sharply below 100 yen last month.
"I think the market has also pretty much factored in a slowdown in the U.S. market."
Nippon Steel Corp (5401.T) and other top steelmakers fell after UBS said that steelmakers would need to hike prices further to offset a higher-than-expected rise in the price of iron ore and coking coal.
UBS analyst Atsushi Yamaguchi said in a note to clients that Australian mining firms are expected to set the offer price of coking coal at three times last year's price while iron ore made in Australia would be set around 5 percent higher than Brazil.
Shares of Nippon Steel fell 3.2 percent to 526 yen, JFE Holdings Inc (5411.T) dropped 4 percent to 4,580 yen and Sumitomo Metal Industries Ltd (5405.T) slipped 2 percent to 395 yen.
Volume picked up slightly, with 828 million shares traded on the Tokyo Stock exchange's first section.
Decliners outpaced advancers by roughly two to one.
