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(Adds stocks, details)
By Aiko Hayashi
TOKYO, June 19 (Reuters) - Japan's Nikkei share average slid
2 percent on Thursday, led lower by exporters such as Honda
Motor Co <7267.T> on a firmer yen and worries about a weak U.S.
economy, a major destination for world exports.
Bank shares including top lender Mitsubishi UFJ Financial
Group <8306.T> took a beating as concerns the credit crisis was
tightening its grip on commercial banks hit their U.S.
counterparts.
"It seems the United States wants to curb inflation even if
it risks slowing down the economy," said Takahiko Murai, general
manager of equities at Nozomi Securities.
"Exports support Japan's economy and there's no way Japan
won't be affected. Shanghai and Vietnamese stocks are already
eroding."
A rare bright spot was battery maker GS Yuasa Corp <6674.T>,
which jumped 3.9 percent to book a lifetime high as investors
see a promising future for next-generation car batteries and
electric cars amid surging oil prices and worries about global
warming.
GS Yuasa was the most actively traded stock in terms of both
volume and value on the Tokyo Stock Exchange.
Masayoshi Okamoto, head of dealing at Jujiya Securities,
said that because stocks like GS Yuasa were the most actively
traded, it indicated a lack of direction in the market in the
face of the global economic slowdown.
The benchmark Nikkei <> ended morning trade down 293.42
points at 14,159.40.
The broader Topix <> slipped 2.1 percent to 1,379.42.
The dollar edged down 0.2 percent to 107.65 yen <JPY=>,
pulling further away from a four-month high of 108.59 yen struck
earlier this week.
The Dow Jones industrial average <> sank to its lowest
close in three months on Wednesday as worries about a weak
economy compounded credit sector concerns and drove shares of
banks, autos and transport companies sharply lower. []
EXPORTERS, BANKS DOWN
A stronger yen curbs exporters' overseas profits when they
are brought back home.
Exporter Honda skidded 3.7 percent to 3,690 yen and Canon
Inc <7751.T> fell 1.8 percent to 5,460 yen.
Toyota Motor Corp <7203.T> lost 2.8 percent to 5,510 yen
after the automaker said it was cutting U.S. production of its
full-size pickup trucks further this year as record gasoline
prices have depressed sales of gas-hungry trucks and SUVs.
[]
Japanese bank shares fell, with Mitsubishi UFJ dropping 3.5
percent to 1,039 yen.
Second-ranked Mizuho Financial Group <8411.T> declined 2.8
percent to 554,000 yen and Sumitomo Mitsui Financial Group
<8316.T>, the third-biggest bank, gave up 3.8 percent to 904,000
yen.
Adding to the already bleak outlook for bank stocks, Fifth
Third Bancorp <FITB.O> said on Wednesday the Midwestern bank
would cut its dividend and raise $2 billion in capital.
Among gainers, Sanyo Electric <6764.T> rose 3 percent to 279
yen after saying on Thursday that it plans to double annual
production of rechargeable batteries to 50 million as more
consumers choose the economical and environmentally friendly
alternatives. []
Trade was moderate on the Tokyo exchange's first section,
with 1 billion shares changing hands, almost in line with last
week's morning average.
Declining stocks outpaced advancing ones by a ratio of
nearly 7 to 1.
(Editing by Brent Kininmont)
