*Nikkei slips 3.3 percent in thin trade, exporters weigh
*Automakers weak after bad news about General Motors
*China euphoria eroded by growing U.S. economic woes
(Adds stocks, details)
By Elaine Lies
TOKYO, Nov 11 (Reuters) - Japan's Nikkei average fell 3.3
percent on Tuesday as Honda Motor Co <7267.T> and other exporters
were sold on a stronger yen and growing fears about the global
economy after a raft of gloomy U.S. company news.
Chemicals firm Mitsubishi Rayon Co <3404.T> slid almost 7
percent after saying it is considering acquiring unlisted British
chemicals producer Lucite International in a bid to become the
world's largest maker of acrylic monomers. []
The good mood sparked on Monday by China's economic stimulus
package had largely evaporated, though machinery shares such as
Hitachi Construction Machinery <6305.T> remained buoyant on
expectations of increased business opportunities there.
"There's increasing signs of slowing consumption in the
United States, and this -- put together with poor Japanese
machinery orders data yesterday -- is hitting exporters," said
Nagayuki Yamagishi, strategist at Mitsubishi UFJ Securities.
"This will have a negative impact on Japanese shares, no
matter how much money China throws around.
On Monday, Deutsche Bank lowered its equity value on General
Motors <GM.N> to zero, sending its shares to 62-year lows, and
analysts warned that Goldman Sachs <GS.N> could post a quarterly
loss for the first time in its history. []
The bankruptcy filing by Circuit City Stores Inc <CC.N>, the
No. 2 U.S. consumer electronics retailer, also underlined growing
U.S. consumer spending cutbacks, an ominous sign as the Christmas
shopping season approaches.
In data released on Monday, Japan's core machinery orders
suffered their biggest quarterly fall in a decade and
manufacturers saw a weak rebound as companies brace for global
recession by cutting capital investment. []
The benchmark Nikkei <> shed 299.98 points to 8,781.45
after earlier falling more than 4 percent, while the broader
Topix <> lost 2.7 percent to 892.31.
Trade was thin, with some market players saying investors
were already growing nervous about the global financial summit of
Group of 20 leaders in Washington on Friday and Saturday.
"There's talk that it will be extremely difficult to bring
the different groups together to agree about anything, and this
is scaring off investors," said Tomomi Yamashita, a fund manager
at Shinkin Asset Management.
Market participants also said profit-taking had emerged after
Monday's 5.8 percent rise in the Nikkei.
"The Nikkei is taking a breather after yesterday's rise above
the psychologically important 9,000 level and the key 25-day
moving average," said Yumi Nishimura, deputy general manager at
Daiwa Securities SMBC.
EXPORTERS, ENERGY
The yen gained against the dollar, weighing on exporters,
whose overseas profits suffer from a strong yen when repatriated.
<JPY=>
The yen and the Deutsche report about GM helped push Honda
and Toyota Motor Co <7203.T> lower, with Honda losing 4.9 percent
to 2,250 yen and Toyota down 4.3 percent at 3,320 yen.
Canon Inc <7751.T> slipped 7.2 percent to 3,190, becoming the
largest drag on the Nikkei 225 by volume weight. Sony Corp
<6758.T> fell 4.1 percent to 2,250 yen.
Mitsubishi Rayon slid 6.9 percent to 228 yen.
Energy-linked shares suffered after U.S. crude oil futures
<CLc1> fell over $2 a barrel in electric trade on Tuesday,
erasing gains made the previous day on China's stimulus package
and Saudi Arabia's pledge to cut supplies. []
Oil and gas field developer Inpex <1605.T> slid 8 percent to
542,000 yen, while top oil distributor Nippon Sekiyu <5001.T>
lost 4.7 percent to 384 yen.
Trade was thin, with 880 million shares changing hands on the
Tokyo stock exchange's first section compared to last week's
morning average of 1.1 billion.
Declining shares outnumbered advancing shares by more than 3
to 1.
(Additional reporting by Masayuki Kitano; Editing by Edwina
Gibbs)
