Nikkei dips 0.1%, exporters slip on econ worries

TOKYO (Reuters) - The Nikkei stock average dipped 0.1 percent on Monday, on course to mark its longest losing streak in more than half a century as exporters such as Sony Corp slid on worries about a global economic slowdown.

Daikin Industries Ltd dropped 3.4 percent to become the biggest drag on the benchmark Nikkei after Goldman Sachs cut its price target, citing a surprisingly weak outlook for the air conditioner maker's first quarter, hurt by slumping demand in Europe.

U.S. markets were closed on Friday for the Independence Day holiday. The Nikkei finished Friday down 0.2 percent, falling for a 12th day and marking its longest losing streak since a 15-day period in 1954.

Takahiko Murai, general manager of equities at Nozomi Securities, said it is difficult for the Japanese market to snap the losing run unless the U.S. market recovers, but that depends on whether oil prices come down.

"The Japanese economy is vulnerable to a slowdown in overseas economies as it depends on exports including exports to emerging countries," he said.

"There was a view for a while that Japanese stocks may be immune to those problems, but that is fading."

The Nikkei fell 8.43 points to end the morning session at 13,229.46, falling for a 13th day.

The broader Topix was nearly flat at 1,297.53.

Market analysts said the summit of Group of Eight (G8) wealthy nations would likely have little impact on the stock market this week.

A three-day meeting of leaders from the G8 countries starts on Monday in Hokkaido, northern Japan, with climate change, soaring food and oil prices slated to dominate the agenda.

"If they come up with measures to deal with this financial crisis, the market might may react a little bit. Otherwise, I don't expect any impact," said Katsuhiko Kodama, senior strategist at Toyo Securities.

EXPORTERS DOWN

Sony Corp shed 1.3 percent to 4,570 yen, while industrial robot maker Fanuc Ltd declined 1.6 percent to 9,660 yen.

"Investors could start buying exporters on dips with the currency trading at this level, but at the moment they don't have enough room to take that into account because of the current economic situation," said Kodama at Toyo Securities.

The dollar was steady at 106.66 yen in early Asian trade. A stronger yen curbs exporters' profits when they are brought back home.

Shares of Daikin fell to 4,830 yen after Goldman Sachs cut its price target to 5,400 yen from 5,700 yen.

Magara Construction Co Ltd plunged by its daily limit, down 75 percent to 10 yen, after the construction firm said it had filed for corporate rehabilitation after it became unable to honour payments due this week.

The Tokyo Stock Exchange and the Osaka Securities Exchange have both decided to delist the firm on August 6.

On the upside, shares of Trend Micro Inc rose 3.7 percent to 3,620 yen after Mitsubishi UFJ Securities lifted its rating to "1" from "2".

The brokerage said the computer security software maker is expected to beat its own forecast for the second quarter, bolstered by growth in both corporate and consumer sales despite an economic slowdown.

Trade was slow on the Tokyo exchange's first section, with 755 million shares changing hands, below last week's morning average of 900 million.

Declining stocks beat advancing ones by 954 to 621.

(Editing by Brent Kininmont)