Nikkei down 0.9 pct, led by automakers on US sales
(Updates to midmorning)
TOKYO, Aug 4 (Reuters) - The Nikkei average fell 0.9 percent on Monday, with Honda Motor (7267.T) and Toyota Motor (7203.T) hit after weak U.S. auto industry sales fanned worries about the health of the world's largest economy.
Yamaha Corp (7951.T) extended losses and plunged more than 12 percent after Goldman Sachs reduced its rating to "sell" from "neutral" following the musical instrument maker's first-half outlook cut.
"It's a tough start to the week. U.S. consumption is getting worse than expected," said Fumiyuki Nakanishi, group manager of the investment information department at SMBC Friend Securities.
Toyota, whose July U.S. sales fell 12 percent, last month cut its 2008 groupwide global sales forecast due to a pronounced downturn in the U.S. market.
"When Toyota cuts its production, there will be steel, glass and tyres in excess inventory," Nakanishi said.
As of 0051 GMT, the benchmark Nikkei .N225 fell 116.48 points to 12,978.11. The broader Topix lost 1.1 percent to 1,259.47.
Honda fell 3.5 percent to 3,360 yen and Toyota lost 3.3 percent to 4,460 yen.
U.S. auto sales plunged to a 16-year low in July, led by a 27 percent drop at General Motors Corp GM.N, as high gas prices and tight credit sent the industry into a tailspin. [ID:nN01496226]
The sales decline was steeper than analysts had expected and showed an accelerating downturn in the world's largest vehicle market as Americans abandoned the SUVs and trucks they had favoured for more than a decade.
Yamaha fell 12.3 percent to 1,806 yen, adding to a 7 percent fall on Friday when it announced its outlook cut.
On a bright note, Fast Retailing Co Ltd (9983.T) rose 2.7 percent to 12,460 yen. The operator of the Uniqlo casual clothing chain is scheduled to report its July sales figures after the close. (Reporting by Taiga Uranaka; Editing by Chris Gallagher)
