Nikkei falls 1.1 pct as blue chips sold
(Adds stocks and comments)
TOKYO, April 22 (Reuters) - Japan's Nikkei stock average fell 1.1 percent on Tuesday, led lower by blue chip exporters such as Honda Motor Co Ltd (7267.T) as a stronger yen prompted investors to lock in profits after the market climbed for five days.
Japan's largest brokerage, Nomura Holdings Inc (8604.T), fell nearly 4 percent after an investigation was launched into one of its employees on suspicion of insider trading. [ID:nTFA003078]
The Nikkei had gained 6 percent in the previous five days on receding pessimism about the credit crisis.
"The worst seems to be over. But there are few factors to push up the market further, and that has prodded investors to take profits," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management.
He said he would look closely at earnings from U.S. technology firms including Microsoft (MSFT.O) later this week. "We know financials are weak, but we need to see how these will affect the broader economy," he said.
Bank of America (BAC.N) was the latest financial firm to report, posting on Monday a 77 percent decline in quarterly profit, as a growing number of consumers and real estate developers failed to repay loans. [ID:nN21410537]
Microchip maker Texas Instruments (TXN.N) forecast results below market expectations, citing caution among a broad customer base as well as weak demand for high-end cellphones. [ID:nN21466974]
The benchmark Nikkei average .N225 ended the morning down 153.74 points at 13,542.81. The broader TOPIX index lost 1.4 percent to 1,312.99.
The dollar was traded at 102.88 yen JPY=, down from 103.21 in late New York trade.
Honda Motor fell 2.1 percent to 3,260 yen after shooting up 9 percent on Monday. Toyota Motor Corp (7203.T) lost 2.2 percent to 5,250 yen.
Nomura fell 3.8 percent to 1,640 yen.
CSK PLUNGES
CSK Holdings Corp (9737.T) lost 7.1 percent to 2,135 yen, among the top drags on the Nikkei, after the computer systems and financial services firm slashed its earnings estimates.
After the market closed on Monday, CSK said its group net profit for the year ended March would total 100 million yen ($970,000), far below its previous forecast of 17.5 billion yen, citing among other reasons a deterioration in its securities business amid a global downturn in stock markets. [ID:nT216W2QPJ]
In a broad sell-off, financials also fell, with Japan's largest bank, Mitsubishi UFJ Financial Group (8306.T), down 2.7 percent at 1,017 yen.
Nippon Steel Corp (5401.T) fell 1.6 percent to 562 yen after the Nikkei business daily reported on Tuesday that Japan's top steelmaker plans to ask automakers and other customers to accept a nearly 40 percent increase in prices for its mainstay steel products to offset soaring raw materials prices.
"It's about whether Nippon Steel wins or Toyota wins," said Fumiyuki Nakanishi, group manager of the investment research department at SMBC Friend Securities. "They are likely to share the pain in the end. I don't think Toyota will accept the price hike in full."
Among the standouts was oil and gas field developer Inpex Holdings Inc (1605.T). It rose 2.5 percent to 1.24 million yen after U.S. crude oil futures ended at a record settlement high on Monday.
Trade was moderate, with 779 million shares changing hands, compared with last week's morning average of 770 million.
Declining shares beat advancing ones by two to one.
($1=103.20 yen)
(Editing by Brent Kininmont)
