*Nikkei pares losses, down 0.3 percent
*Double-punch of stronger yen, worry about company results
*Trade thin as investors nervous before G20 summit
*Commodities-linked firms suffer as oil extends losses
(Adds stocks, details)
By Elaine Lies
TOKYO, Nov 12 (Reuters) - Japan's Nikkei average shed 0.3
percent on Wednesday as Canon Inc <7751.T> and other exporters
were nailed by a stronger yen, with a string of dismal U.S.
company news fanning worries about a global economic slowdown.
Mitsubishi Corp <8058.T> and other commodities-linked shares
were hit by oil's tumble to settle below $60 on Tuesday for the
first time in 20 months, while oil and gas field developer Inpex
Inc <1605.T> fell 4.6 percent. []
But chemicals firm Mitsubishi Rayon Co <3404.T> bucked the
trend in a big way by surging 12.3 percent after saying on
Tuesday it will acquire unlisted British chemicals producer
Lucite International for $1.6 billion in cash [].
Gloomy company news both overseas and in Japan is inhibiting
investors already nervous after a series of disappointing
economic indicators, including core Japanese machinery orders,
which this week posted their biggest quarterly fall in a decade.
"Whether it's economic indicators or company news, all of
it's just too awful," said Takashi Ushio, head of the investment
strategy division at Marusan Securities.
"Domestically, there are a lot of shares that seem oversold,
but given the bad fundamentals -- especially the outlook for poor
Japanese earnings in the second half of this business year --
it's really hard to buy."
In thin trade, the benchmark Nikkei <> shed 26.82 points
to 8,782.48 after earlier falling more than 2 percent, while the
broader Topix <> lost 7.10 points or 0.8 percent.
Fears of a global slowdown grew on news of falling demand at
aluminium maker Alcoa <AA.N> and a dismal outlook from Tyco
International Ltd <TYC.N>. The market was also eyeing General
Motors <GM.N> as its shares slid for a 5th day and investors
worried about the chances of the auto sector gaining a government
cash infusion. []
Many investors were jittery ahead of this weekend's summit by
the G20 group of wealthy nations and large emerging economies in
Washington to discuss steps to address the global financial
crisis.
"The previous G7 summit was mainly aimed at dealing with the
credit crisis, but this one is now struggling to tackle the issue
of slowing economies, with the market hoping for some kind of
joint international action," said Ushio.
"If nothing emerges, there's likely to be a huge shock, so
nobody is buying at this point."
Other market players, though, said that buying from pension
funds and retail investors would emerge at the lows and keep the
market supported.
But some were sceptical, noting that while many individual
investors have recently been opening new accounts with securities
firms, the amount of their purchases are too small to add up to
significant support in face of the general gloom.
"I've attended a number of sessions at which companies give
explanations of their results, and the tone across the board is
very dark both for the first half and the second," said Masayoshi
Okamoto, chief of dealing at Jujiya Securities.
"In this climate, who's going to buy?"
TRADERS TUMBLE AS OIL FALLS
Trading firms were hit especially hard as oil extended its
losses early on Wednesday after falling 5 percent the day before
as the deepening global economic criss dragged down markets and
raised the spectre of further slowdowns in energy demand
[].
Crude oil futures <CLc1> for December delivery managed to
crawl back above $59 in morning trade, but trading houses were
still suffering although off earlier lows.
Japan's largest trading house, Mitsubishi Corp, was down 6.4
percent at 1,412 yen, the fifth-largest drag on the Nikkei 225 by
volume weight. Fellow trader Mitsui & Co <8031.T> shed 3 percent
to 944 yen and Marubeni Corp <8002.T> fell 1.6 percent to 371
yen.
The dollar clawed higher against the yen by midday, helping
exporters pare their losses and bolstering the market <JPY=>.
Canon slipped 3.2 percent to 3,050 yen, while Sony Corp
<6758.T> fell 3.5 percent. Panasonic Corp <6752.T> even climbed
into positive territory, rising 0.9 percent to 1,500 yen.
Trade was light on the Tokyo exchange's first section, with
917.4 million shares changing hands, compared with last week's
morning average of 1.1 billion.
Declining stocks outpaced advancing ones by nearly 2 to 1.
(Reporting by Elaine Lies; editing by Sophie Hardach)
