*Nikkei falls 0.7 percent to near five-month low
*Exporters slide on firmer yen, global economic worries
*Energy-related shares gain as oil holds above $121
(Adds stocks, details)
By Aiko Hayashi
TOKYO, Aug 22 (Reuters) - The Nikkei average fell 0.7 percent
on Friday to hit its lowest point in nearly five months, as
exporters such as Honda Motor Co <7267.T> slid on a stronger yen
and concern about the global economy.
Top lender Mitsubishi UFJ Financial Group <8306.T> and other
banks slid after Wall Street analysts predicted further mortgage
writedowns for big U.S. banks, and a potential government bailout
for mortgage firms Freddie Mac <FRE.N> and Fannie Mae <FNM.N>.
[]
But energy-linked shares such as trading houses and oil and
gas field developer Inpex Holdings <1605.T> got a lift on robust
gains in oil prices <CLc1> to above $121 a barrel. []
"The trading environment is worse than yesterday as the yen
became stronger after yesterday's close and oil prices rose
sharply," said Yoshinori Nagano, chief strategist at Daiwa Asset
Management.
"Continuing worries about the global economy, including
Japan, are also weighing on the market."
The benchmark Nikkei <> shed 85.50 points to end the
morning session at 12,666.71, its lowest level since April 1.
The broader Topix <> was down 0.7 percent at 1,216.39.
The dollar was trading around 108.55 yen <JPY=> against the
yen, having fallen from a seven-month high of 110.67 yen hit last
week. A stronger yen reduces the value of exporters' profits when
they are brought back home.
Kenichi Hirano, operating officer at Tachibana Securities,
said losses were limited as the yen was still trading around 108
yen, and because the benchmark had avoided sliding further after
breaking below last month's lowest level.
"But even if the market goes to positive territory, selling
pressure could mount again as most dealers don't want to hold on
to stocks during the weekend under the current situation."
EXPORTERS DOWN
Honda shares slid 2.6 percent to 3,440 yen, while industrial
robot maker Fanuc Ltd <6954.T> lost 2.8 percent to 8,100 yen. The
stocks were the top two drags on the Nikkei 225.
Amid worries about the U.S. financial system, Mitsubishi UFJ
fell 1.6 percent to 797 yen, while No.2 Mizuho Financial Group
<8411.T> shed 2.4 percent to 449,000 yen.
Oil prices rose nearly 5 percent to above $121 a barrel on
Thursday, putting a dramatic end to a slide of more than $20
since mid-July. []
That pushed shares in Inpex 2 percent higher to 1.2 million
yen.
Among trading houses that make the bulk of profits from their
energy and natural resources businesses, Mitsubishi Corp <8058.T>
was up 1.9 percent at 3,010 yen and Mitsui & Co <8031.T> gained
2.3 percent to 1,794 yen.
Trade was light on the Tokyo exchange's first section, with
753 million shares changing hands, below last week's morning
average of 910 million.
Declining shares beat advancing ones by 937 to 620.
(Reporting by Aiko Hayashi; Editing by Edwina Gibbs)
