* Euro zone worries not erased, leading to profit-taking
* Mizuho Financial down after news of $8.7 bln share offer
* Investors dump shares of firms with disappointing outlooks
* Foreign orders before trade show 4th day of selling
By Aiko Hayashi
TOKYO, May 11 (Reuters) - Japan's Nikkei average slipped 1
percent on Tuesday, as euphoria over a $1 trillion package to
prevent the spread of Europe's debt crisis dissipated and as
Mizuho Financial <8411.T> fell on news of a big share offering.
Sumitomo Mitsui Financial Group <8316.T> also tumbled as its
affiliate consumer lender Promise <8574.T> slid after a loss
warning and after a report that SMFG was set to raise its share
offer limit.
Doubts over Greece's ability to implement debt cuts as well
as worries about weakness in the euro have kept Tokyo stocks this
week from matching a 4 percent jump for U.S. stocks -- their
strongest gain since March 2009. [] []
"Weakness in the euro is weighing on investor confidence.
There are concerns whether the crisis plan will really come to
fruition because each country still has to discuss it," said
Yutaka Miura, a senior technical analyst at Mizuho Securities.
"In today's market environment, there's no buying other than
short-covering, and once that comes to a halt, the market gets
overwhelmed by profit-taking."
The benchmark Nikkei <> fell 100.27 points to 10,430.43,
after earlier rising as much as 1.1 percent to 10,643.28.
The broader Topix <> fell 1.1 percent to 933.96.
Orders for Japanese stocks placed through 10 foreign
securities houses before the start of trade on Tuesday showed
selling for a fourth straight day. []
The euro fell 1 percent against the yen to around 118.00 yen
<EURJPY=> a day after jumping almost 2 percent against the
Japanese currency. Against the dollar, it stood at $1.2730
<EUR=>, down 0.5 percent.
"What the EU did was really huge, but the fact that the euro
is still weak despite that large a package shows that this
problem has very deep roots," said Masayoshi Okamoto, head of
dealing at Jujiya Securities.
"Without more gains in the euro, markets will remain
nervous."
MIZUHO DROPS, PROMISE TUMBLES
Mizuho lost 4.1 percent to 164 yen, becoming the most
actively traded stock by volume on the main board, after sources
told Reuters that it plans to issue about $8.7 billion of shares
to meet stricter capital requirements. []
Mizuho has been under pressure to raise new capital after top
lender Mitsubishi UFJ Financial Group <8306.T> raised about $15
billion and third-ranked Sumitomo Mitsui about $20 billion in
their two rounds of fundraising between December 2008 and
February this year.
Mizuho raised only $5.7 billion in the same period.
Toyota Motor Corp <7203.T>, which announces results later on
Tuesday, came under new scrutiny on Monday from the U.S.
government, which launched a probe into whether Toyota promptly
notified safety regulators about a pickup truck recall for a
steering system problem. [] []
Its shares fell 0.6 percent to 3,500 yen.
Investors dumped shares of companies reporting disappointing
earnings outlooks.
Shares of Promise Co <8574.T> tumbled 16.6 percent to 720 yen
after the consumer lender warned it would likely fall back into
the red this year, defying expectations for a small profit in a
sign the industry may not be past the worst. []
Among other big consumer lenders, Acom Co <8572.T> dropped
6.3 percent to 1,303 yen and Takefuji Corp <8564.T> lost 6.2
percent to 336 yen.
Japan Steel Works <5631.T> shed 4.5 percent to 936 yen after
it issued an operating profit forecast, 21 percent below the
previous year and just under a consensus estimate from Thomson
Reuters I/B/E/S.
Food group Ajinomoto <2802.T> fell 3.9 percent to 816 yen
after the company estimated its operating profit for this
financial year at 57 billion yen, down 11 percent from the
previous year and below a consensus of 66.4 billion yen from
Thomson Reuters I/B/E/S.
But Sumitomo Heavy Industries <6302.T> jumped 4.2 percent to
595 yen after it said it will make Nihon Spindle <6242.T>, a
maker of spindles and rings for spinning machines, a wholly owned
subsidiary to seek synergy effects for further business growth.
Shares of Nihon Spindle were untraded due to a glut of buy
orders at 210 yen, up more than 30 percent from Monday's close.
(Additional reporting by Elaine Lies; Editing by Edwina Gibbs)
