Nikkei falls 0.8 pct on weak U.S. data, firmer yen

                                
 * Exporters decline on firmer yen, weak U.S. retail data
                                
 * Analysts say drops mainly due to profit-taking
                                
 By Aiko Hayashi
                                
 TOKYO, April 15 (Reuters) - Japan's Nikkei average shed 0.8
percent on Wednesday, weighed down by exporters such as Canon Inc
<7751.T> on a firmer yen and after a surprise drop in U.S. retail
sales helped dampen investor confidence.
                                
 Analysts said the falls were largely due to profit-taking
sparked by the weak U.S. data, as the benchmark Nikkei <.N225>
had jumped more than 20 percent from lows in early March.
                                
 Defensive stocks such as drugmakers found favour as exporters
lost ground, with Takeda Pharmaceutical Co <4502.T> climbing 2
percent to become the biggest positive contributor to the Nikkei
225.
                                
 "Profit-taking of this size is natural, considering the
Nikkei has gained more than 20 percent from its recent lows,"
said Yutaka Miura, a senior technical analyst at Shinko
Securities.
                                
 "But the correction trend in the market is continuing as
views on the economy had been overly pessimistic."
                                
 The benchmark Nikkei <.N225> fell 74.33 points to 8,768.35,
after slipping 0.9 percent the previous day for its second
consecutive day of falls.
                                
 The broader Topix <.TOPIX> declined 1.1 percent to 834.15.
                                
 U.S. retail sales in March ended two months of increases and
sparked selling across the board on Wall Street on Tuesday, with
the stocks of retailers, big manufacturers and energy companies
among the casualties. The Standard & Poor's 500 Index <.SPX> slid
2 percent. [.N]
                                
 S&P 500 <SPc1> and Nasdaq 100 <NDc1> stock index futures were
also down after shares in chipmaker Intel Corp <INTC.O> fell in
after-hours trade.
                                
 Intel reported strong first-quarter earnings but failed to
give a clear revenue forecast for the second quarter.
[ID:nN14455703]
                                
 EXPORTERS SLIP
                                
 The dollar was trading just below 99 yen <JPY=>, after moving
above 100 yen the previous day. Investors fret over a stronger
yen as it curbs exporter profits when repatriated.
                                
 Canon dropped 3.5 percent to 3,000 yen, while Toyota Motor
Corp <7203.T> slipped 0.8 percent to 3,770 yen and Honda Motor Co
<7267.T> fell 1.1 percent to 2,715 yen.
                                
 Financial shares also fell, with Japan's top bank Mitsubishi
UFJ Financial Group <8306.T> losing 2.8 percent to 522 yen and
Nomura Holdings Inc <8604.T>, the top brokerage, dropping 6.7
percent to 604 yen.
                                
 "Falls in banking shares seem to be a reaction to recent
gains after Wells Fargo's earnings led investors to go back to
them. Worries about bad assets also still remain," said Kenichi
Hirano, operating officer at Tachibana Securities.
                                
 Upbeat preliminary quarterly results from Wells Fargo <WFC.N>
last week had earlier sparked banking sector optimism.
                                
 Elpida Memory <6665.T> jumped 8.1 percent after public
broadcaster NHK reported that Japan was preparing to use public
funds to boost the capital of the PC memory maker. But as of the
midday break, the issue was up just 0.5 percent at 979 yen.
[ID:nT162497]
                                
 Among other gainers, Takeda climbed to 3,600 yen and Astellas
Pharma Inc <4503.T> advanced 3.2 percent to 3,240 yen.
                                
 Retailers also rose, with Aeon Co Ltd <8267.T>, Japan's
second-largest retailer, jumping 5.2 percent to 774 yen even
after reporting its first annual net loss in seven years and its
outlook for this year fell short of the consensus view.
[ID:nT37572]
                                
 Trade was moderate on the Tokyo exchange's first section,
with 1.1 billion shares changing hands, compared with last week's
morning average of 1.2 billion.
                                
 Declining stocks outnumbered advancing ones, 877 to 648.
 (Editing by Joseph Radford)