Nikkei falls 0.6 pct, exporters sold on firmer yen
(Updates to midmorning)
TOKYO, May 12 (Reuters) - Japan's Nikkei share average fell 0.6 percent on Monday, dragged lower by exporters like Canon Inc (7751.T) on a firmer yen against the dollar.
Financials were sold, with Japan's largest bank Mitsubishi UFJ Financial Group (8306.T) falling 2 percent, on rekindled concerns about the health of the financial sector following a massive loss by American International Group (AIG.N).
"The market's weak moves could be a signal that the rebound from March 17 (when the Nikkei hit a recent bottom) is at its peak around here," said Kenichi Hirano, operating officer at Tachibana Securities.
"With the Nikkei average's price-earnings ratio over 16, it's hard to expect it to go up further," he said.
As of 0045 GMT, the benchmark Nikkei average .N225 lost 87.89 points to 13,567.45. The broader TOPIX index shed 0.9 percent to 1,329.39.
Digital camera maker Canon lost 1.1 percent to 5,200 yen and Toyota Motor Corp (7203.T) shed 1.9 percent to 5,200 yen.
The dollar slid below 103 yen, trading at 102.81 yen JPY= in the morning.
Mitsubishi UFJ fell 1.9 percent to 1,067 yen. Japan's largest brokerage Nomura Holdings Inc (8604.T) lost 2.7 percent to 1,742 yen.
One bright spot was air conditioner maker Daikin Industries Ltd (6367.T), which rose 3 percent to 5,210 yen after a report in the Nikkei business daily on Saturday that group operating profit is expected to rise more than 10 percent to about 140 billion yen this financial year, boosted by strong sales of energy-efficient commercial units in China and Europe. (Reporting by Taiga Uranaka; Editing by Chris Gallagher)
