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By Taiga Uranaka
TOKYO, June 25 (Reuters) - Japan's Nikkei stock average fell
1.5 percent to a six-week intraday low on Wednesday, led down by
blue chip exporters such as Canon Inc <7751.T> after the latest
data provided more signals for an economic slowdown in the United
States.
Trade was thin as investors held off bets ahead of the U.S.
Federal Reserve's interest rate decision.
"U.S. housing prices continue to fall, and that hurts U.S.
consumer spending since their credit status is often affected by
home equity," said Kazutaka Oshima, chief strategist at Rakuten
Securties.
A slowdown in U.S. consumer spending curbs Japan's
export-heavy corporate earnings.
Exports to the United States fell 9.5 percent in May to mark
the ninth straight month of decline as slowing growth there
dented demand for Japanese automobiles, while exports to the
European Union were down 1.1 percent, Ministry of Finance data
showed on Wednesday. []
The benchmark Nikkei ended the morning down 204.59 points at
13,644.97, the lowest since May 12. The broader Topix lost 1.6
percent to 1,327.10.
Digital camera maker Canon lost 1.8 percent to 5,430 yen,
and Toyota Motor Corp <7203.T> fell 2.7 percent to 5,090 yen.
The Fed is widely expected to hold interest rates steady at 2
percent later in the day. Investors will scrutinise the
accompanying statement for clues on the central bank's thinking
on mounting inflationary pressure.
U.S. consumer sentiment slid to a 16-year low in June and
house prices suffered a record annual drop in April, according to
data on Tuesday that suggested a retrenchment in spending that
will hinder already meager economic growth. []
TRAIN SPOTTING
Central Japan Railway Co <9022.T> and East Japan Railway Co
<9020.T> stood out, rising on expections for growth in passenger
traffic as more holidaymakers are expected to leave their cars at
home amid rising gasoline prices.
"Gas has become too expensive. I think many people will
switch to trains for this summer vacation season," said Masanobu
Takahashi, chief strategist at Ichiyoshi Securities.
Central Japan rose 1.8 percent to 1.11 million yen, and East
Japan gained 0.7 percent to 834,000 yen.
Asahi Glass Co Ltd <5201.T>, Japan's largest glassmaker, rose
0.4 percent to 1,325 yen after the Nikkei business daily reported
that the company is in talks with carmakers to raise prices of
automotive glass by 10 percent amid rising fuel and raw materials
costs.
Trade was light, with 885 million shares changing hands,
compared with last week's morning average of 919 million.
Decliners outnumbered advancers by nearly 5 to 1.
