Nikkei down 1.4 pct, uncertainty haunts after rally
(Updates to midmorning)
TOKYO, Sept 9 (Reuters) - The Nikkei average fell 1.4 percent on Tuesday, as investors locked in profits after a rally the previous day, amid continued uncertainty over the global economic outlook.
Japan's top banks fell back from double-digit percentage gains seen on Monday following the U.S. government's seizure of troubled mortgage finance companies Fannie Mae (FNM.N) and Freddie Mac (FRE.N). [nN07463067]
Shippers such as Mitsui OSK Lines Ltd (9104.T) declined sharply after the key freight index fell to its lowest in more than one year, indicating a slowdown in the global economy.
"(The U.S. bailout) prevented the worst but when you think calmly, the situation has not changed. It does not help improve U.S. employment figures, for instance," said Fumiyuki Nakanishi, manager of investment information department at SMBC Friend Securities.
In the previous day's surge the Nikkei failed to go above a key technical ceiling, he pointed out, suggesting to chart watchers that the market lacked momentum to sustain gains.
The benchmark Nikkei .N225 fell 172.10 points to 12,452.36. The index had jumped 3.4 percent on Monday
The broader Topix lost 1.3 percent to 1,200.94.
Top lender Mitsubishi UFJ Financial Group (8306.T) declined 1.7 percent to 836 yen and No.2 Mizuho Financial Group (8411.T) slid 1.5 percent to 456,000 yen. Both rose by their daily limit on Monday.
Shipper Mitsui OSK fell 4.8 percent to 1,104 yen and rival Kawasaki Kisen Kaisha Ltd (9107.T) lost 5 percent to 665 yen after the key freight index .BADI fell 3 percent to hit the lowest since late June 2007.
Exporters also faced a broad sell-off, with Honda Motor Co Ltd (7267.T) falling 2.5 percent to 3,560 yen.
