Nikkei falls to 1-week low as strong yen bites; Japan Inc cuts forecasts
* Nikkei down 1.1 pct by midmorning
* Panasonic, Hitachi dive after cutting FY forecasts
* Exporters may have difficult time this year due to China worry
* Oil stocks outperform
By Ayai Tomisawa
TOKYO, Feb 4 (Reuters) - Japan's Nikkei share average fell to a one-week low on Thursday as a stronger yen hurt market sentiment, while bellwether companies such as Panasonic dived after cutting earnings forecasts.
Outperforming the market were oil shares, after a top U.S. Federal Reserve official tempered expectations on the pace of future U.S. interest rate increases, which hammered the dollar and lifted oil prices.
The Nikkei dropped 1.1 percent to 16,999.86 points by midmorning, after falling 3.2 percent on the previous day.
In early trade, the Nikkei slid as low as 16,941.88, the lowest since Jan. 28. Continuación...