* Nikkei slips, hurt by selling after futures settlement
* Strong yen worry caps gains, but sentiment still strong
* China data shows Aug output and investment accelerated
By Elaine Lies
TOKYO, Sept 11 (Reuters) - Japan's Nikkei average slipped
0.5 percent on Friday, hurt by selling that followed the
settlement of futures and options and by concerns over a
stronger yen that pushed automakers like Toyota Motor Corp
<7203.T> lower.
Japan's gross domestic product grew a revised 0.6 percent in
the second quarter, below market expectations for a 0.9 percent
expansion, which was the same as the government's preliminary
estimate issued last month. But market players said it was not
having a significant impact. []
"I wouldn't say the GDP data is completely unconnected to
the Nikkei's dip, but mainly this is due to the yen's advance,
which is quite a negative factor if you think about company
earnings," said Masayoshi Okamoto, head of dealing at Jujiya
Securities.
The dollar slipped 0.3 percent against the yen to 91.46 yen,
after earlier falling to a 7-month low below 91.41 yen.
Since late August the yen has been above levels expected by
major manufacturers for the current financial year. Investors
worry about a stronger yen since it eats into exporters'
earnings when repatriated.
Okamoto said the Nikkei was pushed lower by selling
connected with Friday's settlement of Nikkei futures and
options, adding that a late jump in the benchmark on Thursday
had been a move to push up prices in preparation for this.
The benchmark Nikkei <> shed 47.81 points to 10,465.86
after rising 2 percent on Thursday, its biggest one-day
percentage gain in two weeks. The broader Topix <> lost 0.4
percent to 954.61.
Nikkei futures and options contracts expiring in September
likely settled at 10,541.92, Tokyo market participants said on
Friday, citing estimates by local brokerages.
Market players said some investors appeared to be wary in
the wake of five straight days of gains on Wall Street.
"U.S. shares may have hit a short-term peak, so it's
entirely possible there may now be a brief correction -- and
this would weigh on Japanese shares," said Yutaka Miura, senior
technical analyst at Mizuho Securities.
But others said that recent gains by global share markets
showed that overall sentiment is improving, and that this will
keep the Nikkei supported.
MIXED EXPORTERS
The market was also waiting for a slew of Chinese economic
data that came out after the start of the midday break, which
showed that industrial output and investment accelerated in
August.
Automakers were weak, with Toyota losing 1.3 percent to
3,860 yen and Honda Motor Co <7267.T> down 0.3 percent to 2,915
yen.
Honda will limit auto production in Japan to 1 million cars
and shift more production overseas to rein in costs, Japan's
Asahi daily said on Friday, citing an interview with Honda
President Takanobu Ito.
But tech-linked exporters edged higher, with Canon Inc
<7751.T> up 1.1 percent to 3,620 yen and Sony Corp <6758.T> up
1.4 percent to 2,505 yen after U.S. chip companies Texas
Instruments <TXN.N> and ASML <ASML.AS> both boosted their sales
outlooks in a signal that consumers are spending cash on
personal technology. []
Tokyo Electron <8035.T> rose 1 percent to 5,280 yen.
Shares of talent agency Yoshimoto Kogyo Co Ltd <9665.OS>
surged 3.9 percent to 1,342 yen after two sources familiar with
the matter said the company plans to go private in a 52.7
billion yen ($571 million) buyout led by a consortium of about
20 firms. []
Trade was active, with 1.8 billion shares changing hands on
the Tokyo exchange's first section, up from last week's morning
average of 942 million.
Declining shares outnumbered advancing ones, 948 to 576.
(Reporting by Elaine Lies; Editing by Edwina Gibbs)
