Nikkei hits 5-week low as German data, IMF downgrade fuel growth worries
* Fall in German factory orders highlights global growth worries * Exporter shares fall as yen strengthens * LED makers buck trend after Nobel announcement By Thomas Wilson TOKYO, Oct 8 (Reuters) - Japan's Nikkei share average fell to a five-week low on Wednesday as renewed global growth concerns lifted the safe-haven yen, sending exporter stocks skidding. Global share markets were hit on Tuesday as German industrial production fell a surprisingly large 4.0 percent in August from July, their biggest fall in 5 1/2 years. Adding to concerns about the health of the global economy, the IMF also downwardly revised its 2015 global growth forecast to 3.3 percent, warning of weaker growth in Japan and core eurozone countries. The Nikkei stumbled 1.6 percent in morning trade to 15,529.40, slipping to 15,185.32 at one point, its lowest level since Sept. 2. "The German industrial production data reminds folks that while U.S. data has been strong, much of the rest of the world has been weak," said Stefan Worrall, director of equity cash sales at Credit Suisse. "The question is whether market rallies outside of the U.S. can continue or not," said Worrall. The IMF's downbeat view of Japan, however, was slightly at odds with the position of the BOJ. Governor Haruhiko Kuroda said on Tuesday that the central bank would not embark on additional easing, despite weak Japanese factory output and a nod to concerns at the negative impact of the weak yen on small businesses and consumers. [ID: nL3N0S22EG] The yen strengthened against the dollar as the gloom around the global economy drove investors to the safe-haven Japanese currency. It was trading at 108.35 per dollar, up from six-year low of 110.09 hit last week, prompting investors to sell shares in exporters. Carmakers were among the worst performers, with the Tokyo Stock Exchange's transport equipment makers subindex falling 2.1 percent. Mazda Motor Corp - seen as highly sensitive to the yen's moves - tumbled 4.4 percent. Toyota Motor Corp and Honda Motor Co also fell 2.2 percent and 1.8 percent. Machinery makers were another casualty, with Hitachi Construction Machinery down 3.0 percent. Shares in LED lighting-related firms bucked the broader market, after three Japanese physicists were awarded the Nobel Prize in Physics for research work that led to the creation of modern LED light bulbs. Endo Lighting Corp. grew 1.8 percent and Iwasaki Electric Co., Ltd jumped 3 percent. The broader Topix was down 1.6 percent, while the new JPX-Nikkei Index 400 also fell 1.6 percent. (Reporting by Thomas Wilson; Editing by Shri Navaratnam)
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