Nikkei down 2 pct on U.S. econ worries, firmer yen
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By Aiko Hayashi
TOKYO, June 19 (Reuters) - Japan's Nikkei share average slid 2 percent on Thursday, led lower by exporters such as Honda Motor Co (7267.T) on a firmer yen and worries about a weak U.S. economy, a major destination for world exports.
Bank shares including top lender Mitsubishi UFJ Financial Group (8306.T) took a beating as concerns the credit crisis was tightening its grip on commercial banks hit their U.S. counterparts.
"It seems the United States wants to curb inflation even if it risks slowing down the economy," said Takahiko Murai, general manager of equities at Nozomi Securities.
"Exports support Japan's economy and there's no way Japan won't be affected. Shanghai and Vietnamese stocks are already eroding."
A rare bright spot was battery maker GS Yuasa Corp (6674.T), which jumped 3.9 percent to book a lifetime high as investors see a promising future for next-generation car batteries and electric cars amid surging oil prices and worries about global warming.
GS Yuasa was the most actively traded stock in terms of both volume and value on the Tokyo Stock Exchange.
Masayoshi Okamoto, head of dealing at Jujiya Securities, said that because stocks like GS Yuasa were the most actively traded, it indicated a lack of direction in the market in the face of the global economic slowdown.
The benchmark Nikkei .N225 ended morning trade down 293.42 points at 14,159.40.
The broader Topix slipped 2.1 percent to 1,379.42.
The dollar edged down 0.2 percent to 107.65 yen JPY=, pulling further away from a four-month high of 108.59 yen struck earlier this week.
The Dow Jones industrial average .DJI sank to its lowest close in three months on Wednesday as worries about a weak economy compounded credit sector concerns and drove shares of banks, autos and transport companies sharply lower. [.N]
EXPORTERS, BANKS DOWN
A stronger yen curbs exporters' overseas profits when they are brought back home.
Exporter Honda skidded 3.7 percent to 3,690 yen and Canon Inc (7751.T) fell 1.8 percent to 5,460 yen.
Toyota Motor Corp (7203.T) lost 2.8 percent to 5,510 yen after the automaker said it was cutting U.S. production of its full-size pickup trucks further this year as record gasoline prices have depressed sales of gas-hungry trucks and SUVs. [ID:nN18282534]
Japanese bank shares fell, with Mitsubishi UFJ dropping 3.5 percent to 1,039 yen.
Second-ranked Mizuho Financial Group (8411.T) declined 2.8 percent to 554,000 yen and Sumitomo Mitsui Financial Group (8316.T), the third-biggest bank, gave up 3.8 percent to 904,000 yen.
Adding to the already bleak outlook for bank stocks, Fifth Third Bancorp (FITB.O) said on Wednesday the Midwestern bank would cut its dividend and raise $2 billion in capital.
Among gainers, Sanyo Electric (6764.T) rose 3 percent to 279 yen after saying on Thursday that it plans to double annual production of rechargeable batteries to 50 million as more consumers choose the economical and environmentally friendly alternatives. [ID:nT139438]
Trade was moderate on the Tokyo exchange's first section, with 1 billion shares changing hands, almost in line with last week's morning average.
Declining stocks outpaced advancing ones by a ratio of nearly 7 to 1.
(Editing by Brent Kininmont)
