* Nikkei down 2.0 pct after jumping 7.6 pct previous week
* Exporters fall on rising yen, weak U.S. retail reports
* Investors eye development in U.S. auto sector bailout
(Adds stocks, details)
By Rika Otsuka
TOKYO, Dec 1 (Reuters) - Japan's Nikkei average fell 2.0
percent by midday on Monday as global recession fears prompted
investors to book profits after last week's rally, with exporters
such as Toyota Motor Corp <7203.T> slipping on a firmer yen.
Honda Motor Co <7267.T> dropped 4.9 percent after a top
executive at the car maker said it would have a tough time
meeting its lowered annual profit forecasts due to an
increasingly severe sales environment. []
"Investors sold this morning as the psychological 9,000 mark
in the Nikkei came in the sight on Friday," said Yuuki Sakurai,
general manager of financial and investment planning at Fukoku
Mutual Life Insurance.
"Investors cannot buy shares aggressively unless governments
in Japan, the United States and Europe all introduce stimulus
packages big enough to make them believe the global economy will
improve," Sakurai said.
The benchmark Nikkei <> slid 166.44 points to 8,345.83
by the end of morning trade, after having jumped 7.6 percent the
previous week.
The broader TOPIX <> declined 1.4 percent to 822.77.
Trade was thin, with 698 million shares changing hands
compared with last week's morning average of 779 million.
Declining shares outnumbered advancers by more than 3 to 1.
"Stocks' performance may be lacklustre this week as
investors' attention will shift back to the deteriorating U.S.
economy, with many economic reports due there," said Kazuhiro
Takahashi, general manager at Daiwa Securities SMBC.
The string of U.S. data being eyed by market participants
this week includes monthly employment data on Friday.
Early results from the Black Friday weekend that marks the
start of the Christmas shopping season in the United States
showed that sales grew in shops and online, fuelled by repeat
trips and deep discounts.
But an early rush is unlikely to save what is shaping up to
be a bleak sales season, analysts said. []
Worries about weaker consumption in the United States made
investors more pessimistic about Japanese exporters' earnings as
a big chunk of their sales come from the U.S. market.
Among consumer electronics firms, Sony Corp <6758.T> slipped
1.2 percent to 1,821 yen and Sharp Corp <6753.T> was down 1.4
percent at 635 yen.
Electronic parts maker Kyocera Corp <6971.T> fell 1.9 percent
to 5,850 yen on profit-taking after it surged 17 percent on
Friday. A rise in the yen also dented Kyocera.
The yen advanced against other major currencies on Monday as
expectations grew for rate cuts overseas to counter fallout from
the global financial crisis. []
Honda Motor tumbled to 1,982 yen, while Toyota fell 3.0
percent to 2,910 yen.
Investors shunned automakers as they nervously waited to see
whether the Big Three U.S. automakers could win support for
emergency funding from the U.S. government.
General Motors Corp, Ford Motor Co and Chrysler LLC will soon
complete their restructuring plans demanded by Congress as a
condition of considering a $25 billion rescue package for the
embattled industry. []
"Developments regarding the Big Three will be a key factor
deciding the direction of the stock market," said Takahiko Murai,
general manager of equities at Nozomi Securities.
(Editing by Michael Watson)
