* Bernanke's commitment to low rates reassures, but yen hurts
* Toyota gains; chief apologises for accidents, vows reforms
* Denso falls as FBI raids 3 Japanese auto parts makers
By Aiko Hayashi
TOKYO, Feb 25 (Reuters) - Japan's Nikkei average reversed
early gains to fall 0.2 percent on Thursday, with strength in the
yen outweighing U.S. Federal Reserve Chairman Ben Bernanke's
comments that interest rates would be kept at very low levels for
a long time.
Denso Corp <6902.T> fell 2.2 percent to weigh on the broader
market after authorities said the FBI has raided three
Detroit-area Japanese auto parts makers for a sealed federal
antitrust investigation, including Toyota suppliers Denso and
Tokai Rika <6995.T>. []
But Toyota Motor Corp <7203.T> <TM.N> inched up after Toyota
chief Akio Toyoda apologised to consumers and pledged reforms to
sceptical lawmakers at U.S. congressional hearings. Toyota's U.S.
listed shares jumped 3.9 percent. [] []
"The market welcomed a rebound in U.S. stocks after news that
the country will continue its low rate policy," said Yutaka
Miura, a senior technical analyst at Mizuho Securities.
"But we've seen a series of worse-than-expected economic data
from America lately and uncertainty about the outlook for the
U.S. economy is increasing ... and there's also a worry that the
low rate policy in the U.S. will drive the yen to strengthen."
Bernanke offered a relatively somber assessment of the U.S.
economy, and a report on new home sales on Wednesday highlighted
the Fed's predicament. Sales slumped more than 11 percent to a
record low, suggesting the sector at the epicentre of the
financial crisis had yet to fully heal. []
But he also said a weak job market and tame inflation warrant
low interest rates for "an extended period", dampening
speculation a policy tightening might be nearing and boosting
equities markets worldwide. []
The benchmark Nikkei <> fell 19.04 points to 10,179.79,
after gaining nearly 1 percent at one stage.
The broader Topix <> was almost unchanged at 895.49.
The dollar fell 0.4 percent to 89.76 yen <JPY=>. Investors
fret about a stronger yen as it eats into exporters' profits when
they are repatriated.
"Investors will likely keep gains in check as they continue
to examine the outlook for the economy. They also still don't
know what kinds of results Toyota's hearings will bring about in
the end," said Kazuhiro Takahashi, general manager at Daiwa
Securities Capital Markets.
Shares of Denso fell to 2,432 yen and Tokai Rika lost 3.8
percent to 1,621 yen.
The FBI's Detroit division served warrants at Denso, Yazaki
North America and Tokai Rika on Tuesday evening, Special Agent
Sandra Berchtold said in a statement. The substance or reason
behind the warrants was not disclosed.
Denso, which supplies accelerator pedals and other parts to
Toyota, confirmed that the raid on its U.S. offices was part of
an investigation into alleged antitrust violations and that it
was not related to Toyota's recalls.
Among exporters, Sony slipped 1 percent to 3,080 yen and
Advantest Corp <6857.T> fell 0.9 percent to 2,145 yen.
In Tokyo trade, Toyota rose 0.6 percent to 3,295 yen. The
stock has shed about 20 percent since its recall crisis
intensified on Jan. 21.
Toyoda's appearance marked a dramatic peak in a safety crisis
that broke a month ago with a series of recalls over unintended
acceleration and braking problems that now includes more than 8.5
million vehicles globally.
(Editing by Edwina Gibbs)
