Nikkei falls 0.4 pct on global economic worries, yen

                                
 *Nikkei falls 0.4 percent, Topix down 0.3 percent
                                
 *Firmer yen, global economic worries weigh on exporters
                                
 *Higher oil prices buoy energy-linked shares
 (Adds stocks, details)
                                
 By Aiko Hayashi
                                
 TOKYO, Aug 21 (Reuters) - The Nikkei average fell 0.4 percent
on Thursday as worries about the health of the global economy and
a firmer yen put pressure on exporters such as electronic parts
maker Kyocera Corp <6971.T>.
                                
 But energy-linked shares including trading houses and oil and
gas field developer Inpex Holdings <1605.T> provided support
after oil prices moved up near $116 a barrel. [O/R]
                                
 "Exporters don't have the power to keep rising as the U.S.
and European economies are getting worse and demand volumes are
declining," said Takahiko Murai, general manager of equities at
Nozomi Securities.
                                
 "The currency had been their only hope, but the yen is
getting a bit stronger now."
                                
 The benchmark Nikkei <.N225>, which reversed course after
opening higher, shed 44.56 points to 12,807.13, while the broader
Topix <.TOPX> declined 0.3 percent to 1,229.49.
                                
 The dollar was trading around 109.64 yen <JPY=> against the
yen, having fallen back from a seven-month high of 110.67 yen hit
last week. A stronger yen curbs exporters' profits when they are
brought back home.
                                
 Yumi Nishimura, manager of the investment advisory section at
Daiwa Securities SMBC, said mounting uncertainty in the U.S.
financial sector had caused investors to hold back, leading to
volatility in the market.
                                
 "There's uncertainty surrounding new developments on Freddie
and Fannie, and investors don't have the right cues to buy
stocks. That's why we don't have a situation where energy-linked
shares can buoy the overall market."
                                
 Expectations that an imminent government bailout of Fannie
Mae <FNM.N> and Freddie Mac <FRE.N> would wipe out shareholders
drove the stocks to almost two-decade lows on Wall Street. [.N]
                                
 EXPORTERS DOWN
                                
 Kyocera fell 1.3 percent to 9,040 yen, while Toyota Motor
Corp <7203.T> slipped 0.8 percent to 4,790 yen.
                                
 Amid U.S. financial worries, Japan's financial stocks also
lost ground. Top lender Mitsubishi UFJ Financial Group <8306.T>
fell 0.5 percent to 813 yen, while No.2 Mizuho Financial Group
<8411.T> shed 1.1 percent to 463,000 yen.
                                
 Nomura Holdings <8604.T>, Japan's biggest brokerage, was down
1.3 percent at 1,445 yen.
                                
 Shares of Inpex jumped 2.7 percent to 1.16 million yen.
                                
 Trading houses that make the bulk of profits from their
energy and natural resources businesses also rose, with
Mitsubishi Corp <8058.T> up 3.3 percent at 2,985 yen and Mitsui &
Co <8031.T> gaining 2.9 percent to 1,770 yen.
                                
 Shares of Sumitomo Metal Industries Ltd <5405.T> shot up 4.5
percent to 488 yen after the Nikkei business daily said the
company would spend more than 10 billion yen ($91 million) to
boost output of high-performance steel tubes used in power plants
and oil and gas exploration.
                                
 Trade was light on the Tokyo exchange's first section, with
748 million shares changing hands, below last week's morning
average of 910 million.
                                
 Declining stocks outpaced advancing ones by more than 2 to 1.
 (Reporting by Aiko Hayashi; Editing by Edwina Gibbs)