Tokyo shares fall 0.29pc by noon

TOKYO: Tokyo shares fell 0.29 percent Thursday amid concerns over a slowing US economy after New York stocks extended their losing streak to a sixth straight trading day.

The benchmark Nikkei index sagged 27.87 points to 9,421.59 by the break after rebounding on dip-buying the previous day. The Topix index of all first-section issues lost 0.56 percent or 4.57 points to 809.88.

In New York on Wednesday the Dow Jones Industrial Average fell 0.18 percent, ending in negative territory on fresh signs of trouble for the US economic recovery.

Tokyo stocks were also pressured by the recent firmness of the yen, brokers said. The dollar fetched 80.01 yen in Tokyo morning trade, slightly up from 79.87 yen in New York overnight but still close to one-month low posted Wednesday.

"On the flip side, the Nikkei today may be supported by a lack of better investment options elsewhere, amid a US economic slowdown, ongoing debt concerns in the eurozone, and prospects of more rate hikes in emerging markets," Kenichi Hirano, operating officer at Tachibana Securities, told Dow Jones Newswires.

Stocks fell on relatively light volume as investors kept a close eye on the yen and on May consumer confidence data due later Thursday, Yumi Nishimura, senior market analyst at Daiwa Securities, said.

Shares in embattled Tokyo Electric Power (TEPCO) hit an all-time low of 159 yen before standing at 160 yen by noon, down 20.0 percent.

The fall reflected continued uncertainty over government plans to ensure the company can meet compensation bills over the crisis at its Fukushima Daiichi nuclear plant.

Nintendo fell further to 16,230 yen by lunch break, down 4.13 percent, after its second-generation Wii videogame console unveiled Tuesday disappointed the market.

"The product itself is not bad -- market expectations had been far too high," Mitsushige Akino, a chief fund manager at Ichiyoshi Investment Management, said.

Copyright AFP (Agence France-Presse), 2011