* Yen, profit-taking send Nikkei off 10-month highs
* Weak U.S. consumer data dampens quick recovery hopes
* Japan's GDP in line but recovery still seen fragile
By Aiko Hayashi
TOKYO, Aug 17 (Reuters) - Japan's Nikkei average fell 2.2
percent on Monday, retreating from 10-month highs, with exporters
such as Kyocera <6971.T> hit as the yen rose against the dollar
on concerns about how quickly the U.S. economy will recover.
Japan's economy grew 0.9 percent in April-June from the
previous quarter, marking the first expansion in five quarters
and in line with a median market forecast for 1.0 percent growth,
data showed before the start of trade. []
[]
Market players said the Nikkei, which scored a 10-month
closing high on Friday, succumbed to profit-taking after the GDP
news, which the market watched closely, ran its course, with the
stronger yen adding to the negative momentum.
"The trend for a stronger yen, behind which is growing
concern about consumer spending in the United States, is weighing
heavily on the market," said Hiroaki Kuramochi, chief equity
marketing officer at Tokai Tokyo Securities.
In moderate trade, the benchmark Nikkei <> shed 237.08
points to 10,360.25, after ending 0.8 percent higher on Friday to
book its highest finish since Oct. 3.
The broader Topix <> declined 2 percent to 954.48.
In early Asian trade the dollar was down 0.3 percent at 94.60
yen <JPY=>. Investors fret about a stronger yen as it curbs
exporters' profits when they are repatriated.
"Profit-taking in market heavyweights may be bringing down
the index more than it seems natural, but the market isn't really
worried that today's fall means a change in the upward trend,"
said Kenichi Hirano, operating officer at Tachibana Securities.
On Friday, the S&P 500 Index <.SPX> fell 0.9 percent after
data from the Reuters/University of Michigan Surveys of Consumers
showed consumer confidence fell more than expected in early
August, dropping to its lowest level since March. []
The weaker figure underscores concern that consumer demand
remains soft, denting hopes for a rebound that have fuelled the
rally in stocks.
While a moderate expansion is expected to continue in the
coming quarters in Japan, economists say the risk of a double-dip
recession cannot be ruled out, especially if recovery is delayed
in the United States and other major economies.
"The headline figures were slightly weaker than expected but
the contents were not surprising," said Kyohei Morita, chief
economist at Barclays Capital Japan.
"But today's data was driven by stimulus steps in Japan and
overseas, and Japan's economy is far from self-sustaining
growth."
EXPORTERS DRAG
Exporters led falls in the market, with electronics parts
maker Kyocera losing 3.5 percent to 7,550 yen and Sony Corp
<6758.T> dropping 4.1 percent to 2,605 yen. Industrial robot
maker Fanuc Ltd <6954.T> shed 3.3 percent to 7,520 yen.
Honda Motor Co <7267.T> skidded 3.2 percent to 3,020 yen.
CSK Holdings <9737.T> tumbled 7.1 percent to 421 yen after
the company, which principally provides information services,
reported a bigger-than-expected quarterly loss, hurt by its
flagging real estate securitisation business.
Oil and gas field developer Inpex Corp <1605.T> gave up 3.1
percent to 721,000 yen after oil prices posted their biggest fall
in more than two weeks on Friday. []
But shares of companies that produce medical masks and
fabrics used to make them jumped after the news of Japan's first
death from H1N1 flu. []
Shikibo Ltd <3109.T> surged 9.8 percent to 201 yen, while
Fujibo Holdings <3104.T> gained 8.7 percent to 163 yen. Daiwabo
Holdings <3107.T> shot up 9 percent to 424 yen.
Some 970 million shares changed hands on the Tokyo exchange's
first section, slightly above last week's morning average of 932
million.
Declining shares outnumbered advancing ones by about 6 to 1.
(Additional reporting by Tokyo newsroom; Editing by Joseph
Radford)
