* Nikkei loses 0.9 pct in light, seesaw trade
* Grim TDK news on earnings and jobs drags on tech shares
* Dollar down on U.S. economy woes, pressures exporters
* Investors wary ahead of U.S. jobs data, three-day weekend
(Adds stocks, details)
By Elaine Lies
TOKYO, Jan 9 (Reuters) - Japan's Nikkei average slipped 0.9
percent on Friday in seesaw trade as renewed global economy worry
pushed the yen up and exporters down, while grim news from TDK
Corp <6762.T> dragged tech shares lower.
Fears about the U.S. economy fanned by bleak holiday retail
sales figures helped send investors into defensive shares such as
toiletry goods maker Kao Corp <4452.T>and drugmakers, braking
the market's fall.
But TDK's announcement that it expects to post a record loss
this business year due to weak orders and a stronger yen, and
will close factories and cut more than 8,000 overseas jobs to
reduce costs, cast a shadow over Tokyo trade. []
The benchmark Nikkei <>, which forged sharply higher in
the first three trading days of the year on expectations for
economic action by the incoming U.S. administration, has now shed
all of those gains.
"Hopes for the government of (U.S. President-elect) Barack
Obama remain strong, but the economy is rapidly worsening, and we
have no choice but to face up to this," said Takahiko Murai,
general manager of equities at Nozomi Securities.
The dollar held steady against the yen around 91.24 yen
<JPY=> but gains were capped ahead of a report expected to show
the U.S. economy lost more than half a million jobs in December
for the second month in a row, pressuring exporters.
"Looking at the yen and the overseas economic situation,
we're seeing defensive shares gain a bit -- but only a bit," said
Masayoshi Okamoto, head of dealing at Jujiya Securities.
"Given the jobs data and the three-day weekend coming up,
investors are unwilling to put out their hands and buy. Trade is
likely to remain mostly directionless."
Japanese markets will be closed on Monday for a national
holiday.
The Nikkei, which began the morning in positive territory,
shed 83.70 points to 8,792.72 by the midday break. The broader
Topix <> lost 1.3 percent to 849.79.
NO HOLIDAY CHEER
Wal-Mart stores Inc <WMT.N> and other top U.S. retailers
delivered disappointing December same-store sales and profit
warnings on Thursday, announcing the most dismal holiday shopping
season in nearly 40 years and sparking fresh recession concerns.
[]
Seven & I Holdings Co Ltd <3382.T>, Japan's largest retailer,
was up for much of the morning before edging down 0.2 percent to
2,745 yen. The company reported on Thursday a 7.9 percent rise in
operating profit for the quarter ended in November and kept its
forecast for the year, as its convenience stores attracted
thrifty consumers. []
But Fast Retailing Co Ltd <9983.T>, operator of the Uniqlo
chain of discount clothing stores, climbed 4.2 percent to 12,750
yen ahead of its first-quarter results due later on Friday.
The wave of downward revisions that has hit exporters has now
reached the retail sector as shoppers become more concerned about
income prospects and job security.
Aeon Co Ltd <8267.T>, Seven & I's closest rival, cut its
outlook on Wednesday and warned it may post its first annual net
loss in seven years, hit by flagging sales, a writedown at U.S.
unit Talbots <TLB.N> and accounting changes. []
Aeon was down 2.7 percent at 815 yen.
TECH TROUBLES
TDK's woes were emphasised by a report by brokerage Goldman
Sachs that maintained its neutral rating on the electronics
component maker but said more gloom may lie ahead.
"We take a positive view of the timing of the reform
announcement, but the business environment is worse then
expected, and we do not see upside from our forecasts despite the
reforms," Goldman analyst Daiki Takayama wrote.
"The shares seem overvalued after a rebound, and we expect a
short-term correction."
Industrial robot maker Fanuc <6954.T> fell 7 percent to 6,250
yen and Advantest Corp <6857.T> lost 4.1 percent to to 1,380 yen.
Kyocera Corp <6971.T>, which began the day higher, erased those
gains to fall 1 percent to 6,670 yen.
Canon lost 1.9 percent to 3,110 yen and Sony Corp <6758.T>
slipped 1.1 percent to 2,175 yen.
However, losses were braked by gains in defensive shares such
as Kao, which climbed 3.1 percent to 2,630 yen, and cosmetics
maker Shiseido <4911.T>, which rose 1.1 percent to 1,813 yen.
Trade slowed on the Tokyo exchange's first section, with 953
million shares changing hands, compared with Thursday morning's
1.1 billion.
Declining stocks outpaced advancing ones by more than 2 to 1.
(Reporting by Elaine Lies; Editing by Chris Gallagher)
