Nikkei average falls

Japanese shares slipped on Thursday, with a sell-off in Tokyo Electric Power Co and financial firms weighing on the broad Topix index as radiation leaks from a quake-stricken nuclear plant stifled any optimism on the global economy.
Market observers said the problems at the troubled power facility remain the key focus for investors, with the market in a narrow range as there have not been any major developments at the plant recently. They also said that investors would continue to monitor the 9,500 level on the Nikkei as a key psychological threshold.
"The Nikkei faces a lot of selling pressure above 9,500. Foreign operators who bought shares when the Nikkei plunged near 8,000 are looking for opportunities to sell on gains. Domestic investors are waiting to lock in profits above 9,500," said Yutaka Miura, a senior technical analyst at Mizuho Securities.
While the near-term market outlook is seen depending on whether Japan can safely stabilise the crippled plant, in the longer run, the market could fall under the weight of the damage from the massive earthquake this month and likely power shortages.
"Investors are still wary. Since companies are expected to have a difficult time in the April-June quarter, weakness in the market may last through that period," said Naoki Fujiwara, a fund manager at Shinkin Asset Management.
The benchmark Nikkei average fell 0.2 percent, or 14.46 points, to 9,435.01. The Topix slipped 0.8 percent to 853.95. The Topix underperformed the Nikkei due to heavy selling of TEPCO shares, which tumbled 14 percent to 902 yen, after the firm said on Wednesday it had changed its annual dividend payment forecast to "undecided" from 60 yen per share in its previous estimate.
It was the biggest percentage loser on the Nikkei and the most actively traded share by turnover on the Tokyo Stock Exchange's main board.
Drops in financials also hit the Topix, as short-term investors took profits from recent gains. Daiwa Securities Group dropped 4.1 percent to 376 yen, while Nomura Holdings fell 3.3 percent to 440 yen and Mitsubishi UFJ Financial Group shed 2.5 percent to 392 yen.
Construction companies continued to benefit from expectations of reconstruction demand, while automakers such as Toyota Motor suffered from worries about disruption to their supply chains. Toyota dropped 2.7 percent to 3,215 yen.