(Adds stocks, details)
By Aiko Hayashi
TOKYO, March 5 (Reuters) - Japanese stocks dipped in see-saw
trade on Wednesday as worse-than-expected company spending data
dampened investor confidence about the health of the domestic
economy, hitting machinery makers and offsetting a jump by Fast
Retailing Co Ltd <9983.T> on an upbeat earnings outlook.
Financial shares such as Mitsubishi UFJ Financial Group
<8306.T> fell amid growing worries about domestic demand and
lingering global credit market jitters.
"Investors reconfirmed uncertainty over the domestic economic
outlook after the weak company capital spending data, which
indicated the possibility of a downward revision to GDP," said
Yutaka Miura, deputy manager of the equity information department
at Shinko Securities.
Japanese companies cut spending on plant and equipment more
than expected in the final quarter of 2007 compared with a year
earlier, pointing to a downward revision to GDP and underlining
views that the Bank of Japan will leave interest rates on hold
for some time. []
"But without any factors for buying or selling, the market
will likely hover around 13,000, helped somewhat by the
stabilising currency trading at mid-103 yen against the dollar,"
Miura said.
The benchmark Nikkei average <> was down 0.2 percent or
27.87 points at 12,964.41 after moving in and out of negative
territory throughout the morning session.
The broader TOPIX index <> was down 0.4 percent or 5.22
points at 1,260.44.
The dollar was trading at around 103.35 yen <JPY=>. Rising
risk aversion following a drop in global stocks had pushed the
dollar to a three-year low of 102.6 yen on Monday.
Hiroyuki Nakai, a chief strategist at Tokai Tokyo Securities,
said investors also held back ahead of a raft of U.S. economic
data, including non-manufacturers ISM later in the day and
Friday's employment report for February.
The U.S. Dow Jones industrial average and S&P 500 fell on
Tuesday as bank stocks slid on a broker warning about more losses
at Citigroup Inc <C.N> and the Federal Reserve chairman said
mortgage delinquencies and foreclosures were likely to rise. []
FAST RETAILING SHINES
Shares of Fast Retailing gained 3.7 percent to 7,610 yen, the
biggest positive contributor to the Nikkei 225, after the Nikkei
business daily said the clothing retailer would likely post a 16
percent rise in half-year operating profit, beating its forecast
on solid sales of underwear and sweaters. []
Top bank Mitsubishi UFJ fell 2.3 percent to 881 yen, No. 2
Mizuho Financial Group <8411.T> dropped 3.1 percent to 403,000
yen and Sumitomo Mitsui Financial Group <8316.T>, the
third-biggest bank, shed 1.5 percent to 706,000 yen.
Construction machinery maker Komatsu Ltd <6301.T> gave up 1.5
percent to 2,565 yen and machine tool maker Okuma Corp <6103.T>
lost 4.1 percent to 914 yen.
"Investors are avoiding risky stocks as the data showed
weakening capital spending," said Tokai Tokyo's Nakai.
Among gainers, shares of Terumo Corp <4543.T> rose 1.7
percent to 5,530 yen after the medical equipment maker said it
would buy back up to 15 billion yen ($145 million) worth of its
own shares from March 5-18, equivalent to 1.3 percent of all
shares outstanding.
Trade was light on the Tokyo exchange's first section,, with
839 million shares changing hands, compared with last week's
morning average of 964 million.
Declining shares beat advancing ones by a ratio of nearly two
to one.
(Reporting by Aiko Hayashi; Editing by Mike Miller)
