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Nikkei slips as Toyota falls, but yen supports

Published 09/29/2009, 09:32 PM
Updated 09/29/2009, 09:36 PM
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* Toyota down, says to recall some 3.8 mln vehicles in U.S.

* Dlr/yen above 90 yen helps exporters, supports market

* NGK Insulators jumps on upbeat full-year forecasts

TOKYO, Sept 30 (Reuters) - Japan's Nikkei average slipped 0.1 percent on Wednesday as Toyota Motor Corp fell following a U.S. recall announcement, but shares of other exporters such as Honda Motor Co gained from a halt in the yen's rise against the dollar.

Toyota fell 0.6 percent to 3,550 yen after saying it will recall some 3.8 million vehicles because of the risk that a loose floormat could force down the accelerator, a problem suspected of causing crashes that have killed five people.

The stock market was bolstered by steadier currency moves and data showing Japanese industrial output rose in August, though the pace of gain slowed for the fourth straight month and manufacturers expect a further slowdown in September.

"We have fairly positive conditions for the market. Although U.S. stocks fell slightly, U.S. consumer confidence data wasn't way off expectations and Japan's industrial output data showed the situation is stabilising," said Kazuhiro Takahashi, general manager at Daiwa Securities SMBC.

"Calmer currency moves are also a plus, though comments by government officials could still influence them."

The benchmark Nikkei fell 10.93 points to 10,089.27, after rising 0.9 percent the previous day.

The broader Topix was flat at 903.70.

On Tuesday, the S&P 500 Index shed 0.2 percent as Conference Board's Consumer Confidence Index for September fell, underscoring concerns about personal finances amid the worst job market in 26 years.

Exporters gained, helped by the yen that stood around 90.15 yen to the dollar in early Asia trade, after hitting an eight-month high against the greenback at 88.23 yen on Monday.

Many Japanese exporters have set their exchange rate assumptions for the dollar around 90-95 yen for the current fiscal year to March.

The impact of a stronger yen on earnings of exporter companies is a concern for market players as a stronger Japanese currency eats into exporters' profits when they are repatriated.

Honda Motor Co added 1.9 percent to 2,755 yen, while electronics parts maker Kyocera Corp advanced 1.8 percent to 8,460 yen and Tokyo Electron Ltd climbed 1.9 percent to 5,790 yen.

NGK Insulators shot up 7.5 percent after the producer of insulators for power utilities and high-energy density batteries raised its profit forecasts for the year to March 2010, citing a steady recovery in demand for auto and electronics-related products.

Shares of NGK Insulators jumped to 2,055 yen. It revised up its net profit forecast for the current business year to March to 12.5 billion yen ($138.7 million), from its previous forecast of 11.0 billion yen. (Reporting by Aiko Hayashi; Editing by Hugh Lawson)

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