Japanese shares slide 0.83 percent by noon

TOKYO: Japanese shares were off 0.83 percent at noon on Friday as growing instability in the Middle East and North Africa and renewed jitters over the economic health of the eurozone hit sentiment, dealers said. The Nikkei index of the Tokyo Stock Exchange fell 87.04 points to 10,347.34. The Topix index of all first section shares dropped 0.97 percent, or 9.07 points, to 921.77. A wider-than-expected US trade deficit and a rare trade shortfall in China for February also hit sentiment. Tokyo followed global markets lower after a sovereign downgrade for Spain raised eurozone debt fears and turmoil in Saudi Arabia raised concerns of higher oil prices impacting global growth as regional unrest spreads.

"Even though (corporate) Japan's current fundamentals are solid, investors are making decisions based on a six to 10-month outlook, which is looking increasingly cloudy with the Saudi unrest," Hirochi Nishi, general manager of the equity division at Nikko Cordial Securities, told Dow Jones Newswires. In Saudi Arabia, a witness said police shot and wounded three protesters in the oil-rich Eastern Province while trying to disperse a rally calling for the release of prisoners, raising fears regional turmoil was spreading. Moody's on Thursday lowered Spain's long-term debt rating by a notch to Aa2 with a negative outlook, a serious setback to the country's efforts to quell fears it may need an international financial rescue.

"Worries over Europe's economic health are resurfacing, but that takes a backseat to the Saudi Arabia situation," said Yumi Nishimura, deputy general manager of investment strategy at Daiwa Securities.Oil was mixed in Asian trade on Friday, with New York's main contract, light sweet crude for delivery in April rising two cents to $102.72 per barrel. Brent North Sea crude for April delivery was down six cents to $115.37. Fast Retailing, which operates cheap-chic clothing store Uniqlo, was off 0.87 percent at 12,510 yen. Softbank, Apple's carrier in Japan, was off 1.04 percent at 3,320. Snack maker Calbee enjoyed a strong debut on the Tokyo Stock Exchange, and was up 8.5 percent at 2,279 after opening at 2,100.