*Nikkei falls 1 percent, led down by automakers
*Honda, Toyota and rivals hit after weak US auto sales data
*Yamaha extends losses on Goldman Sachs downgrade to "sell"
(Adds stocks and comments)
By Taiga Uranaka
TOKYO, Aug 4 (Reuters) - The Nikkei average fell 1 percent
on Monday, with Honda Motor <7267.T> and Toyota Motor <7203.T>
sliding after weak U.S. auto sales, while other exporters fell
on growing worries about the health of the world's largest
economy.
Yamaha Corp <7951.T> extended losses and plunged more than 7
percent after Goldman Sachs reduced its rating to "sell" from
"neutral" following the musical instrument maker's first-half
outlook cut.
"It's a tough start to the week. U.S. consumption is
worsening more than expected," said Fumiyuki Nakanishi, group
manager of the investment information department at SMBC Friend
Securities.
Toyota, whose July U.S. sales fell 12 percent, last month
cut its 2008 groupwide global sales forecast due to a pronounced
downturn in the U.S. market.
"When Toyota cuts its production, there will be steel, glass
and tyres in excess inventory," Nakanishi said, pointing to an
impact on a wider range of industries.
The benchmark Nikkei <> ended the morning down 133.53
points at 12,961.06. The broader Topix <> lost 1.4 percent
to 1,255.36.
A raft of Japanese corporate earnings reports are due this
week, including from Mitsui & Co <8031.T> and Kirin Holdings
<2503.T> later in the day.
"I haven't seen any surprises in first-quarter earnings so
far. But the outlook (for corporate earnings) is getting
worrisome," said Katsuhiko Mori, senior portolio manager at
Daiwa SB Investments.
AUTO IN FOCUS
Honda fell 5.2 percent to 3,300 yen and Toyota lost 3.9
percent to 4,430 yen. They were among the biggest drags on the
Nikkei.
U.S. auto sales plunged to a 16-year low in July, led by a
27 percent drop at General Motors Corp <GM.N>, as high gas
prices and tight credit sent the industry into a tailspin.
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The sales decline was steeper than analysts had expected and
showed an accelerating downturn in the world's largest vehicle
market as Americans abandoned the SUVs and trucks they had
favoured for more than a decade.
Nissan Motor Co <7201.T> shed 4 percent to 795 yen after the
company posted a 46 percent drop in quarterly operating profit,
hit by decreased sales of large vehicles in the U.S. market amid
soaring gasoline prices.
Yamaha fell 7.3 percent to 1,909 yen, adding to a 7 percent
fall on Friday when it announced its outlook cut.Goldman Sachs
said the firm may have to cut prices and production from the
year-end as business could slow in Europe and China due to
macroeconomic changes.
On a bright note, Fast Retailing Co Ltd <9983.T> rose 2.9
percent to 12,480 yen. The operator of the Uniqlo casual
clothing chain is scheduled to report its July sales figures
after the close.
Yamazaki Baking <2212.T> jumped 4.7 percent to 1,283 yen
after the company posted a 32 percent rise in first-half
operating profit as it has been able to pass on rising costs of
flour.
Trade picked up, with 956 million shares changing hands,
compared with last week's morning average of 834 million.
Declining shares beat advancing ones by nearly four to one.
(Editing by Chris Gallagher)
