* Toyota falls after recall hits U.S. sales
* Fast Retailing down after drop in Uniqlo January sales
* U.S. jobs data Friday keeps gains in check -analyst
By Aiko Hayashi
TOKYO, Feb 3 (Reuters) - Japan's Nikkei average rose 0.4
percent on Wednesday as exporters gained on strong U.S. data, but
a drop in shares of Toyota Motor Corp <7203.T> weighed after its
recall woes hit its U.S. sales.
Pioneer <6773.T> jumped more than 5 percent after a newspaper
reported that Mitsubishi Chemical Corp <4188.T> will likely take
a small stake in the electronics maker to jointly develop organic
electroluminescent lighting equipment.
But Fast Retailing <9983.T> fell after the operator of the
Uniqlo casual-clothing chain said its sales fell in January from
the same month last year, the first drop in six months.
[]
Despite big moves in individual stocks, analysts said a
wait-and-see mood was spreading in the overall market ahead of
U.S. jobs data on Friday and amid growing credit worries over
European countries such as Greece.
"Earnings in both Japan and the United States have been
solid, but investors find it hard to keep pushing up the market
until they see market reactions to the jobs data," said Yumi
Nishimura, deputy general manager at Daiwa Securities Capital
Markets.
"If the data turns out to be strong, that would spark worries
about the possibility of rate hikes, even though not immediately,
and if it's poor that itself would be negative for the market."
The benchmark Nikkei <> rose 44.80 points to 10,415.89,
while the broader Topix <> gained 0.6 percent to 918.14.
Market players said that while it would not be surprising for
the Nikkei to try to break above its 25-day moving average,
currently around 10,600, the market remained vulnerable to
profit-taking.
Greek government bond spreads widened on Tuesday, with
investors nervously awaiting the European Commission's verdict
due mid-week on the troubled country's budget plans.
[]
But rising sales of previously owned U.S. homes and robust
earnings from U.S. bellwethers in the consumer and industrial
sectors pointed to a steady rebound in demand, sending Wall
Street higher for a second day on Tuesday.
Investors will be also watching a series of earnings reports
by Japanese big name companies. Those set to announce results
after the close include Honda Motor Co <7267.T>, Sharp Corp
<6753.T> and Mitsubishi UFJ Financial Group <8306.T>
PROBLEMS CONTINUE AT TOYOTA
Toyota shares shed 4.3 percent to 3,450 yen after its recall
woes sent U.S. sales tumbling 16 percent in January, and after a
U.S. official said the government could take the unusual step of
announcing a civil penalty against Toyota. []
In addition, Toyota is facing a growing number of lawsuits
from consumers who complain their vehicles suddenly accelerate or
may do so, and want the world's largest automaker to pay for it.
[]
Fast Retailing lost 3.6 percent to 14,490 yen to become the
biggest drag on the Nikkei 225, after same-store sales at Uniqlo
fell in January due to a shortage of inventory after robust sales
the previous month.
But Pioneer climbed 5.4 percent to 369 yen. The Nikkei
business daily said Mitsubishi Chemical Corp will likely invest
1-1.5 billion yen ($11.1-16.6 million) to take a small stake in
the electronics maker and the two firms will jointly develop
organic electroluminescent lighting equipment.
Among exporters, Canon Inc <7751.T> rose 2.1 percent to 3,685
yen and Honda Motor Co <7267.T> gained 2 percent to 3,130 yen.
KDDI <9433.T> fell 1 percent to 484,000 yen after the
telecoms firm said regulators had questioned it about its plans
to buy a stake in Japanese cable TV network J:Com from U.S.-based
cable operator Liberty Global <LBTYA.O> for about $4 billion.
The Yomiuri newspaper reported on Tuesday that the financial
regulator had asked KDDI to make a tender offer or change the way
it plans to buy the stake, or it could face a fine of more than
80 billion yen ($884.7 million). []
(Editing by Michael Watson)
