Nikkei falls 1 pct as yen weighs, Toshiba drops

                                
   * Toshiba drops after capital raising report
                                
* Promise tumbles on loss warning, firm yen hits exporters
                                
* Investors cautious ahead of U.S. bank results
                                
 By Aiko Hayashi
                                
 TOKYO, April 20 (Reuters) - Japan's Nikkei average fell 1
percent on Monday, weighed down by a tumble in Toshiba Corp's
<6502.T> stock after reports that it plans to raise $5 billion in
capital, while a stronger yen hurt shares in exporters.
                                
 Consumer lender Promise <8574.T> plunged 16 percent after
warning it faces an annual net loss of $1.3 billion as it sets
aside more money to meet repayment claims from customers.
[ID:nT315789]
                                
 Market participants said that concerns about U.S. financial
sector were still weighing on investor confidence, even though
upbeat earnings results from banks such as Citigroup <C.N> have
pushed U.S. stocks higher in past weeks.
                                
 "Investors can't cheer U.S. bank earnings without qualms
because although profits from core operations appear to be
improving, the issue of bad assets remains," said Takahiko Murai,
general manager at Nozomi Securities.
                                
 "Investors are cautious and are taking a wait-and-see stance
ahead of the peak for U.S. bank earnings this week."
                                
 Results this week will include earnings from Bank of America
<BAC.N>, Wells Fargo <WFC.N> and Bank of New York Mellon <BK.N>.
                                
 A top adviser to President Barack Obama said on Sunday that
stress tests of the top 19 U.S. banks would expose some "very
serious problems" but the administration has what it needs to
confront the challenge. [ID:nN19520750]
                                
 In light trade, the benchmark Nikkei <.N225> slipped 85.29
points to 8,822.29. It had climbed 1.7 percent on Friday but lost
0.6 percent on the week, snapping a five-week rising streak.
                                
 The broader Topix <.TOPX> shed 0.8 percent to 839.05.
                                
 In early Asia trade, the euro struck a three-week trough
versus the yen <EURJPY=R> due to uncertainty over policy steps
that the European Central Bank may take.
                                
 Investors fret over a firmer yen as it curbs exporter profits
when they are repatriated.
                                
 The Dow Jones industrial average <.DJI> finished up 0.1
percent on Friday, after General Electric <GE.N> and Citigroup
<C.N> both posted better-than-expected results, lifting the
broader market. [.N]
                                
 The Dow has risen 22.7 percent over the past six weeks,
making advances each week for the largest six-week gain since
July 29, 1938.
                                
 "Even though the Dow rose for six straight weeks, the gains
have been getting smaller in recent weeks -- meaning the upside
is getting heavy," said Yutaka Miura, a senior technical analyst
at Shinko Securities.
                                
 TOSHIBA DROPS
                                
 Toshiba shares fell 6 percent to 312 yen after media said
said it plans to raise about 500 billion yen in capital as early
as June to prop up its finances, battered by loss-making chip
operations and tax credit costs. [ID:nT353559]
                                
 On Friday it widened its net loss estimate for the year ended
March 31 by 25 percent to 350 billion yen after writing down 85
billion yen in deferred tax assets, cutting its shareholders'
equity ratio by more than half from a year ago to 8.2 percent.
[ID:nT308309]
                                
 Japan's top lender Mitsubishi UFJ Financial Group <8306.T>
slid 2.7 percent to 499 yen, while No.2 Mizuho Financial Group
<8411.T> slipped 1 percent to 195 yen and Sumitomo Mitsui
Financial Group <8316.T>, the third-ranked bank, retreated 1.5
percent to 2,995 yen.
                                
 Promise dived 15.8 percent to 1,316 yen.
                                
 Exporters fell, with Canon Inc <7751.T> slipping 1.5 percent
to 2,995 yen, while Honda Motor Co <7267.T> shed 1.8 percent to
2,775 yen.
                                
 Sony Corp <6758.T> fell 1.2 percent to 2,560 yen, after
mobile phone maker Sony Ericsson, owned by Sweden's Ericsson
<ERICb.ST> and Sony, said on Friday it plans to cut one in five
jobs this year in its battle to return to profit as a sluggish
market brought a hefty first-quarter loss. [ID:nLH291382]
                                
 Among stocks that rose, Nippon Steel Corp <5401.T>, the
world's second-biggest steelmaker, climbed 1.7 percent to 352
yen, extending gains after Japanese steelmakers agreed to a
smaller-than-expected cut in steel prices with Toyota Motor Corp
<7203.T> and Credit Suisse upgraded its outlook to "outperform"
from "neutral". [ID:nT286976]
                                
 Some 1 billion shares changed hands on the Tokyo exchange's
first section, compared with last week's morning average of 1.2
billion.
                                
 Declining stocks and advancing ones were almost evenly
matched.
  (Editing by Edwina Gibbs)