(Adds stocks and comments)
By Taiga Uranaka
TOKYO, Feb 22 (Reuters) - Japan's Nikkei share average fell
1.9 percent on Friday, led down by exporters such as Canon Inc
<7751.T> after weak economic data fueled fears of a possible U.S.
recession.
KDDI Corp <9433.T> tumbled, becoming the biggest single drag
on the benchmark average after Japan's No. 2 mobile carrier
announced a new discount plan, raising fears that more price cuts
might follow, which would squeeze profits.
The market's fall came after a sharp gain in the previous
session, which in turn was a rebound from a steep decline the day
before.
Market participants said they were seeing a tug-of-war
between optimism and pessimism in the highly volatile market.
"Investors become by turns happy and sad," said Yoshihiro Ito
of Okasan Capital Management. "Today, stocks are being sold on
fresh worries about the U.S. economy following the Philadelphia"
report.
The Philadelphia Federal Reserve Bank's business activity
index for the mid-Atlantic region in February slumped to its
lowest level since 2001, the time of the last U.S. recession.
The reading was worse than even the most pessimistic Wall
Street forecast, and suggested economic deterioration is
occurring even faster than many had expected.
The Nikkei <> ended the morning session down at
13,423.94 and the broader TOPIX index <> was down 1.5
percent at 1,314.44.
Digital camera maker Canon fell 3.4 percent to 4,820 yen. A
relatively stronger yen also hurt the firm and other exporters,
with Honda Motor Co Ltd <7267.T> down 3.3 percent at 3,270 yen
and Toyota Motor Corp <7203.T> falling 2.6 percent to 5,920 yen.
KDDI DOWN
KDDI plunged to a 20-month low, down 8.7 percent at 660,000
yen.
Analysts estimate the new price plan would erode KDDI's
revenues by 25 billion yen in the next business year, though KDDI
said most revenue falls would be offset by new signups.
Industry leader NTT DoCoMo Inc <9437.T> fell 3.6 percent to
160,000 yen and No. 3 wireless carrier Softbank Corp <9984.T>
slid 2.2 percent to 2,205 yen.
Daiichi Sankyo Co <4568.T> rose 4.9 percent to 3,220 yen on
news U.S. regulators have granted priority review to a closely
watched drug for preventing blood clots being developed by
Daiichi Sankyo and Eli Lilly and Co <LLY.N>. []
Zinc smelter Toho Zinc <5707.T> jumped 5.5 percent to 592
yen, adding to a 15 percent gain the previous session.
Mitsui Mining Co <3315.T> rose 9.1 percent to 455 yen after
public broadcaster NHK said Nippon Steel Corp <5401.T> planned to
raise its stake in the coke producer to above 20 percent from 13
percent to secure a steady supply of raw materials.
After the close of the morning session, Nippon Steel and
trading house Sumitomo Corp <8053.T> announced they would each
raise their stakes in Mitsui Mining to 21.7 percent from 12.9
percent.
Mitsubishi Motors Corp <7211.T> fell 2.3 percent to 172 yen
after the Nikkei business daily said the automaker is expected to
forecast a 10 percent fall in Japanese car sales in the next
business year due to sluggish demand.
Mitsubishi Motors also plans to shrink its domestic network
of nearly 800 dealerships by 100-150 over the next three years to
help make its domestic operations profitable, the paper said.
[]
Trade was moderate, with 912 million shares changing hands,
compared with last week's morning average of 955 million.
Declining shares outnumbered advancing ones by nearly four to
one.
(Editing by Chris Gallagher)
