Nikkei hits 1-week low on Wall St, pause in weak yen trend; Fanuc shines
* Exporters fall as weak-yen trend pauses * Ex-dividend impact takes off about 90 points from Nikkei * Fanuc soars to life-time high on strong outlook By Ayai Tomisawa TOKYO, Sept 26 (Reuters) - Japanese stocks dropped to a one-week low on Friday morning as steep falls on Wall Street depressed risk-appetite, though Fanuc Corp soared to a life-time high after it raised its full-year earnings forecast. The Nikkei share average slipped 1.2 percent to 16,186.56 in mid-morning trade after falling to 16,087.95 at the open, the lowest level since Sept. 18. For the week, the benchmark has shed 0.8 percent after gaining 2.3 percent last week. About 90 points were lopped off the Nikkei by many stocks going ex-dividend, while a pause in the weak yen trend also weighed on the broader market. "Considering the ex-dividend impact, the market isn't that weak," said Masashi Oda, chief investment officer at Sumitomo Mitsui Trust Bank. "Sentiment is still supported by likely strong second-quarter company earnings due to a weaker yen and a U.S. economic recovery." That optimism found expression in Fanuc, which jumped 5.6 percent to a record high of 20,590 yen after the industrial robot maker raised its full-year operating profit outlook to 268.0 billion yen from 204.2 billion yen. Exporters and financial stocks, which outperformed in the past week, were a drag on the market. They pulled back in the wake of a poor showing on Wall Street where the S&P 500 suffered its biggest one-day loss since July. Toyota Motor Corp shed 1.7 percent, Honda Motor Co dropped 2.1 percent, and Canon Inc fell 1.0 percent after the yen managed to stabilise somewhat from a sharp slide. A weak yen boosts exporters' earnings and their competitiveness offshore. The dollar stood at 108.61 yen, having lost a bit of momentum after hitting a six-year high of 109.46 yen a week ago. In the financials space, Mitsubishi UFJ Financial Group declined 2.3 percent and Sumitomo Mitsui Financial Group slid 2.1 percent. The broader Topix dropped 1.2 percent to 1,330.55, and the JPX-Nikkei Index 400 fell 1.2 percent to 12,101.03. (Editing by Shri Navaratnam)
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