* Dubai-type news could continue, hurt risk appetite -analyst
* But falls in Japan stocks likely relatively small -analyst
By Aiko Hayashi
TOKYO, Nov 27 (Reuters) - Japan's Nikkei average fell more
than 2 percent to hit a four-month low on Friday, with a wide
range of shares hit after the dollar hit a fresh 14-year low
against the yen and debt problems in Dubai hit financial markets
and European shares.
Honda Motor Co <7267.T> and other exporters skidded on the
stronger yen, while Japan's top bank Mitsubishi UFJ Financial
Group <8306.T> slipped as banking shares were hurt by concerns
about their exposure to troubled Dubai's debt. []
Dubai concerns also hit Obayashi Corp <1802.T> which plunged
nearly 13 percent after a brokerage cut its rating on the
construction firm which has a project there.
Wall Street was closed for the Thanksgiving holiday on
Thursday, but U.S. stock futures <SPc1> were down more than 2
percent. The pan-European FTSEurofirst 300 index <> dropped
3.3 percent.
"Similar stories as this Dubai one are likely to continue to
come out, leading risk money to pull out from assets such as
commodities and stocks," said Takahiko Murai, general manager of
equities at Nozomi Securities.
Dubai said on Wednesday it wanted creditors of Dubai World
and property group Nakheel to agree a debt standstill as it
restructures Dubai World, the conglomerate that spearheaded the
emirate's breakneck growth. []
In light trade, the benchmark Nikkei <> shed 1.8 percent
to 9,213.51, after falling as much as 2.2 percent to 9,180.47,
its lowest level since mid-July.
The broader Topix <> declined 1.3 percent to 818.58.
"But falls in Japanese stocks will likely be smaller because
money hadn't really poured into the country's stock market to
begin with, compared with U.S. and European stocks that had been
buoyed by rather optimistic views on the global economy," Murai
said.
The dollar hit its lowest level in 14 years against the yen
as investors unwound risk trades amid concerns about debt
problems in Dubai. The greenback fell as far as 84.82 yen <JPY=>
before rebounding back above 86.00.
Obayashi fell to 271 yen after J.P. Morgan downgraded it to
"neutral" from "overweight" and cut its target price, partly due
to worries about the firm's Dubai construction project.
"We think losses related to the Dubai City Transport System
(railways) project could emerge from the 2010 business year, and
we expect orders and earnings to decline due to a delayed
recovery in private sector capex and lower spending on public
works," wrote analyst Hirokazu Anai.
Anai also lowered target prices on Kajima Corp <1812.T> and
Taisei Corp <1801.T>, citing risks of losses from overseas
projects -- Kajima has one in Dubai as well -- along with a
delayed recovery in public works spending.
Kajima lost 10.1 percent to 170 yen and Taisei shed 7.7
percent to 144 yen.
(Reporting by Aiko Hayashi; Editing by Edwina Gibbs)
((aiko.hayashi@thomsonreuters.com; Reuters Messaging:
aiko.hayashi.reuters.com@reuters.net; +81 3 6441 1802))
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