* Nikkei slips, on track for 4-month closing low
* JAL falls below 100, lowest since 2002 re-listing
* Fundraising worries weigh market, eyes on MUFG earnings
By Elaine Lies
TOKYO, Nov 18 (Reuters) - Japan's Nikkei stock average fell
0.7 percent on Wednesday and was on track for its lowest close
since July, dragged lower by banking and real estate shares on
fundraising concerns.
Shares in Japan Airlines Corp <9205.T> fell to their lowest
level since their 2002 re-listing on Wednesday after Japan's
transport minister commented he had never said a court-led
bankruptcy for the troubled airline was impossible, and despite a
report that private equity firm TPG may invest as much as $1.1
billion. []
"Investor sentiment is pretty bad right now, it seems there
is no end to negative factors," said Noritsugu Hirakawa, a
strategist at Okasan Securities.
"We have the strong yen, fundraising worries, political
uncertainty, concern about banks, and JAL."
The benchmark Nikkei <> lost 66.87 points to 9,663.06
and appeared on track for its lowest close since July. The
broader Topix <> lost 1.3 percent to 845.77, its lowest
since May.
The Democrat-led government, which took office in
mid-September, is caught between a rock and a hard place in its
economic management.
Bond yields have risen this month as investors become
increasingly worried about a surge in issuance as tax revenues
slide. But at the same time, government stimulus is driving
economic growth so a cut in state spending could send the economy
back into recession amid talk of a renewed risk of deflation.
The real estate sub-index fell 5.1 percent <.IRLTY.T>,
becoming the second-biggest loser among the subindexes, with
Tokyo Tatemono Co <8804.T> sliding 18.1 percent to 317 yen after
the company said on Tuesday it plans to raise as much as $512
millionin a global share offering to repay debt and fund new
investments. []
Japanese companies have already raised $40 billion through
issuing common stock and convertible bonds this year, tapping a
modest share market rebound for much-needed cash after the
financial crisis -- but at the same time heavily diluting the
holdings of their current shareholders. []
The flurry of capital-raising and market expectations for
more to follow, is one reason why Japanese shares have been left
behind in this year's rally in global equities, market players
say.
Mitsubishi UFJ Financial Group <8306.T>, Japan's biggest
bank, is set to announce results after the bell on Wednesday and
attention will be on whether or not it also announces a new share
issue. Three sources told Reuters on Saturday the bank was
planning to announce the fundraising by the end of this year.
"There's some caution out there about this and that's keeping
people from buying all the banks," said Okasan's Hirakawa.
MUFG lost 2.9 percent to 473 yen, No. 3 bank Sumitomo Mitsui
Financial Group <8316.T> shed 5.8 percent to 2,855 yen and Mizuho
Financial Group <8411.T> fell 4.1 percent to 163 yen.
Sumitomo Realty & Development <8830.T> lost 6 percent to
1,476 yen, Mitsui Fudosan <8801.T> shed 3.9 percent to 1,394 yen
and Mitsubishi Estate <8802.T> fell 4.5 percent to 1,307 yen.
(Reporting by Elaine Lies; Editing by Joseph Radford)
