Japan stocks tumble on U.S. recession fears

                                
 (Adds stocks and comments)
                                
 By Taiga Uranaka
                                
 TOKYO, Feb 6 (Reuters) - Japan's Nikkei share average fell
more than 4 percent on Wednesday, led by banks and exporters such
as Honda Motor Co Ltd <7267.T> on growing fears of a U.S.
recession and a spate of outlook cuts by Japanese companies.
                                
 Mitsubishi UFJ Financial Group <8306.T>, Japan's No.1 bank,
fell 4.2 percent as banks came under pressure on U.S. warnings
that lenders could be hurt by credit downgrades on U.S. bond
insurers.
                                
 "It can't be helped. The market is taking a hit from U.S.
recession fears," said Yoshihiro Ito at Okasan Capital
Management.
                                
  The benchmark Nikkei average <.N225> ended the morning down
4.1 percent at 13,178.16. The broader TOPIX index <.TOPX> fell
3.7 percent to 1,305.03, with declining stocks swamping advancers
by nearly 27 to one on the Tokyo exchange's first section.
                                
 "The impact of subprime problems is spreading into the
broader U.S. economy, and a growing number of Japanese companies
are cutting their profit outlooks," Ito said.
                                
 Alps Electric Co <6770.T> fell 7.7 percent to 1,146 yen after
it cut its annual net profit forecast, citing a likely earnings
decline in the audio equipment business and an asset-impairment
charge in its electronic parts division.
                                
  Concern that the U.S. economy is heading for a downturn
flared up again after data showed the U.S. services sector slowed
in January to levels not seen since the 2001 slump.
[ID:nN05112825]
                                
  "Buyers have completely withdrawn," said Yusuke Sakai, a
manager of equities trading at Mizuho Securities. "The Tokyo
market is moving in lock step with Wall Street. And we need
something more than rate cuts to boost the U.S. market."
                                
 Industrial robot maker Fanuc Ltd <6954.T> fell 5.4 percent to
9,040 yen, putting one of the biggest drags on the Nikkei
average. Honda lost 5.4 percent to 3,130 yen.
                                
 Mitsubishi UFJ fell 4.2 percent to 979 yen and Mizuho
Financial Group <8411.T> lost 4.5 percent to 463,000 yen.
                                
 NISSIN FOOD DIVES
                                
 Nissin Food Products Co Ltd <2897.T> slid 8.4 percent to
3,280 yen after the firm and Japan Tobacco Inc <2914.T> said they
would scrap a plan to merge their frozen food operations in the
wake of a food scare involving poisoned dumplings imported by
Japan Tobacco. [ID:nT208274]
                                
 Japan Tobacco fell 1.6 percent to 568,000 yen.
                                
 Chip maker Rohm Co Ltd <6963.OS> fell 6.4 percent to 7,460
yen after the company cut its annual net profit forecast by a
quarter, blaming fears of a slowdown in the global economy and a
stronger yen. [ID:nT222643]
                                
 Among a few bright spots, Nikon Corp <7731.T> climbed 3.1
percent to 2,845 yen after the camera maker posted a 10 percent
rise in quarterly operating profit and raised its full-year
forecast closer to market expectations on strong demand for
digital cameras. [ID:nT205273]
                                
  Asahi Breweries Ltd <2502.T> gained 1.7 percent to 1,872 yen
after it said its profit fell in 2007 due to a sharp rise in raw
materials costs, but it forecast profit growth above market
expectations this year as it aims to cut costs and raise prices.
[ID:nT193793]
                                
 Trade picked up on the first section of the Tokyo exchange,
with 1.1 billion shares changing hands, compared with last week's
morning average of 976.2 million.
 (Editing by Hugh Lawson)