* Nikkei down 2.3 pct, looks set to snap 7-day win streak
* Economic fears fanned by grim U.S. jobs data, Intel warning
* Resource shares slide after oil tumbles 12 percent
* Fall may be short-lived now, but longer-term outlook bleak
(Adds stocks, details)
By Elaine Lies
TOKYO, Jan 8 (Reuters) - Japan's Nikkei average looked set to
to snap a 7-day winning streak on Thursday, sliding 2.3 percent
after surprisingly bad U.S. jobs data and an Intel Corp <INTC.O>
revenue warning fanned fears about the U.S. economy.
Kyocera Corp <6971.T> and other tech shares bought up over
the past few days slid, along with carmakers. The exception was
Mitsubishi Motors Corp <7211.T>, which shot up 5 percent after
the Nikkei business daily reported it will begin supplying
electric cars to PSA Peugeot Citroen Group <PEUP.PA> as early as
next year. []
Resource linked-shares such as oil and gas field developer
Inpex <1605.T> slid after oil fell 12 percent on Wednesday, its
largest percentage fall in 7 years, on an unexpected rise in
crude inventories.
Recession fears were heightened by a grim private sector jobs
report coupled with the warning from top chip maker Intel, which
said its revenue for the fourth quarter would not meet the
lowered forecast it had given in November, citing weakening
demand for personal computers []
"Everyone's been saying the market has factored in bad
economic data and poor results, but now we're seeing that this
wasn't really true," said Nagayuki Yamagishi, a strategist at
Mitsubishi UFJ Securities.
"From here on we may see the real recession, and in that
sense, the rise in global stock markets around the end and start
of the year may actually have been based on errors of judgment."
The benchmark Nikkei <> shed 212.50 points to 9,026.74
after briefly falling below 3 percent and 9,000, snapping its
longest winning streak since March-April 2006. The broader Topix
<> lost 1.7 percent to 872.80.
Other market players said that while the Nikkei's slide could
well be a brief break in a rising trend likely to continue until
later this month, the longer-term outlook was bleak.
"If the market was reflecting reality today, we wouldn't be
at the levels we are now, we'd be near 7,000. There's still a lot
of hopes for the new U.S. administration," said Tomomi Yamashita,
a fund manager at Shinkin Asset Management.
According to ADP, a private employment service, private
employers shed 693,000 jobs in December, up from the revised
476,000 jobs lost in November and far more than economists
estimated. [].
Non-farm payrolls and unemployment data are due on Friday.
RETAILERS, TECH AND OIL
Aeon Co Ltd <8267.T> pared losses to 1.4 percent and 862 yen
after Japan's no. 2 retailer said it may post its first annual
net loss in seven years, hit by flagging sales, a writedown at
U.S. unit Talbots <TLB.N> and accounting changes. []
Top retailer and convenience store operator Seven & I
Holdings <3382.T> is set to report results after the close.
Tech shares, which climbed sharply the past few days as
investors snapped up the beaten-down stocks, rapidly shed gains
in the wake of the announcement by tech bellwether Intel.
JP Morgan cut its rating on Kyocera to "neutral" from
"overweight" and lowered its price target to 6,500 yen from 8,500
yen. It also cut its target price for Rohm Co Ltd <6963.OS> and
NEC Electronics Corp <6723.T>
Kyocera lost 5.5 percent to 6,820 yen, Advantest Corp
<6857.T> fell 9.1 percent to 1,486 yen and TDK Corp <6762.T> slid
5 percent to 3,610 yen.
The grim jobs data weakened the dollar overnight, and while
it was slowly clawing back up against the yen it was still
trading around 92.82 yen by late morning <JPY=>.
Exporters were dragged lower as a result. A stronger yen eats
into profits when overseas earnings are repatriated.
Canon Inc <7751.T> slipped 2.4 percent to 3,230 yen and
Toyota Motor Co <7203.T> lost 0.6 percent to 3,180 yen.
Mitsubishi Motors, the most actively traded stock by volume
on the main board, rose to 146 yen.
Though New York crude for February delivery <CLc1> clung
below $43, depressing resource shares like Inpex, which fell 7.4
percent to 691,000 yen.
Trading houses, which are major dealers in energy and have
stakes in oil and gas products, fell as well. Mitsubishi Corp
<8058.T>, Japan's largest trader, lost 4.6 percent to 1,344 yen,
while Mitsui & Co <8031.T> shed 4.9 percent to 1,001 yen.
Trade slowed on the Tokyo exchange's first section, with 1.1
billion shares changing hands, compared with Wednesday morning's
1.4 billion.
Declining shares outnumbered advancing ones by nearly 4 to 1.
(Reporting by Elaine Lies; Editing by Edwina Gibbs)
