* Nikkei hits 4-mth low, headed for 5th losing week
* News similar to Dubai's problems could continue -analyst
* Strong yen bigger than Dubai for Tokyo at present -analyst
By Elaine Lies
TOKYO, Nov 27 (Reuters) - Japan's Nikkei hit a 4-month low on
Friday before trimming losses to 2 percent on the day, with a
broad range of shares sold as the yen marked a 14-month high on
the dollar and debt problems in Dubai hurt financial markets and
European shares.
Honda Motor Co <7267.T> and other exporters skidded on the
stronger yen, while Japan's top bank Mitsubishi UFJ Financial
Group <8306.T> slipped as banking shares were hurt by concerns
about their exposure to troubled Dubai's debt. []
Worries about Dubai also hit Obayashi Corp <1802.T> which at
one point plunged nearly 13 percent after a brokerage cut its
rating on the construction firm partly on the prospect of losses
on a project it has in the emirate.
Though Tokyo shares were headed for their fifth straight
negative week, a run unseen since mid-2008, losses appeared to
have halted as investors waited to see how Wall Street would
respond in a holiday-shortened session on Friday.
"I think we won't know the full impact of Dubai until Monday
after we see what happens in New York, where bank shares are
likely to be hit pretty hard," said Masayoshi Okamoto, head of
dealing at Jujiya Securities in Tokyo.
"For Tokyo today, I think the strong yen is perhaps a bigger
issue than Dubai."
U.S. stock futures <SPc1> were down more than 2 percent.
Dubai said on Wednesday it wanted creditors of Dubai World
and property group Nakheel to agree a debt standstill as it
restructures Dubai World, the conglomerate that spearheaded the
emirate's breakneck growth. []
Banking stocks in Europe came under particular pressure
because of potential exposure to any bad debt in the Gulf, as did
shares in European car companies, some of which are part-owned by
sovereign wealth funds from the region. Wall Street was closed
for a holiday.
The benchmark Nikkei <> lost 184.00 points to 9,199.24,
while the broader Topix <> shed 1.4 percent to 817.65.
"Similar stories to this Dubai one are likely to continue to
come out, leading risk money to pull out from assets such as
commodities and stocks," said Takahiko Murai, general manager of
equities at Nozomi Securities.
But he said that falls in Japanese shares might be relatively
limited compared to elsewhere, where stocks have been buoyed by
optimistic views on the global economy.
The dollar hit its lowest level in 14 years against the yen
as investors unwound risk trades amid concerns about the debt
problems in Dubai. The greenback fell as far as 84.82 yen <JPY=>
before rebounding back above 86.00.
The stronger yen eats into exporters' profits when
repatriated.
Honda lost 3.1 percent to 2,680 yen and Toyota Motor Corp
<7203.T> slid 1.8 percent to 3,320 yen. Canon Inc <7751.T> shed
2.1 percent to 3,220 yen.
Among banks, Mitsubishi UFJ Financial Group, Japan's largest
lender, fell 0.7 percent to 451 yen and no. 3 bank Sumitomo
Mitsui Financial Group <8316.T> shed 2.2 percent to 2,660 yen.
Mizuho Financial Group <8411.T> retreated 2.6 percent to 150 yen.
(Additional reporting by Aiko Hayashi; Editing by Joseph
Radford)
((elaine.lies@thomsonreuters.com; +81 3 6441 1807; Reuters
Messaging:elaine.lies.reuters.com@reuters.net))
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