* Nikkei trims gains as yen strengthens slightly, trade light
* Toyota down, says to recall some 3.8 mln vehicles in U.S.
* NGK Insulators jumps on upbeat full-year forecasts
By Aiko Hayashi
TOKYO, Sept 30 (Reuters) - Japan's Nikkei average was flat in
cautious trade on Wednesday, with investors hesitant to actively
take positions ahead of a series of economic data releases, while
Toyota Motor Corp <7203.T> fell following a U.S. recall
announcement.
The stock market lost steam after the dollar/yen <JPY=>
exchange rate fell below 90 yen, though some exporters such as
Honda Motor Co <7267.T> managed to hold on to their gains.
"The yen below 90 yen against the dollar is having a negative
impact, while investors are gradually taking a wait-and-see
approach as they wait for important economic indicators both in
Japan and overseas," said Mitsuo Shimizu, deputy general manager
at Cosmo Securities.
Among a raft of economic indicators due this week, the Bank
of Japan will issue its tankan survey of corporate sentiment for
July-September on Thursday and U.S. jobs data is due on Friday.
"But investors don't want to aggressively sell stocks,
either, due to demand and supply concerns as there still could be
end-of-month-related buying today," Shimizu said.
In light trade, the benchmark Nikkei <> inched up 6.58
points to 10,106.78, after rising 0.9 percent the previous day.
The broader Topix <> was flat at 904.40.
On Tuesday, the S&P 500 Index <.SPX> shed 0.2 percent as the
Conference Board's Consumer Confidence Index for September fell,
underscoring concerns about personal finances amid the worst U.S.
job market in 26 years. [] []
TOYOTA SOFT, EXPORTERS RISE
Toyota fell 0.8 percent to 3,540 yen after saying it would
recall some 3.8 million vehicles because of the risk that a loose
floormat could force down the accelerator, a problem suspected of
causing crashes that have killed five people. []
But market players said they weren't too concerned about the
impact on the company's stock price, with one saying recalls
usually don't have a lasting effect on shares.
NGK Insulators <5333.T> shot up 8.1 percent to 2,065 yen
after the producer of insulators for power utilities and
high-energy density batteries raised its profit forecasts for the
year to March 2010, citing a steady recovery in demand for auto
and electronics-related products.
Other exporters climbed, though many trimmed some of their
earlier gains. The yen stood around 89.77 yen <JPY=> to the
dollar in early Asia trade, after hitting an eight-month high
against the greenback at 88.23 yen on Monday.
Many Japanese exporters have set their exchange rate
assumptions for the dollar around 90-95 yen for the current
fiscal year to March.
The impact of a stronger yen on earnings of exporter
companies is a concern for market players as a stronger Japanese
currency eats into exporters' profits when they are repatriated.
Honda Motor Co <7267.T> added 1.7 percent to 2,750 yen, while
electronics parts maker Kyocera Corp <6971.T> rose 0.7 percent to
8,370 yen and Tokyo Electron Ltd <8035.T> climbed 1.2 percent to
5,750 yen.
Some 723.7 million shares changed hands on the Tokyo
exchange's first section, below last week's morning average of 1
billion. Declining stocks outnumbered advancing ones by 830 to
685.
(Editing by Hugh Lawson)
