Nikkei falls on World Bank's lower growth forecast; Mitsubishi Heavy rises
* Mitsubishi Heavy soars on proposed Alstom deal * Corporate tax cut details positive for market sentiment - analyst By Ayai Tomisawa TOKYO, June 12 (Reuters) - Japan's Nikkei share average fell to a 1 1/2-week low on Thursday morning after the World Bank's downward revision of its global growth forecast soured sentiment, while a stronger yen pulled down exporters. Bucking the weakness, Mitsubishi Heavy Industries surged 2.7 percent and was the sixth most traded stock by turnover after the company said it and Siemens are in talks over a joint bid for the energy assets of France's Alstom . The Nikkei dropped 1.2 percent to 14,893.30 in mid-morning trade. Earlier, it fell as far as 14,862.08 earlier, the lowest since June 2. The World Bank cut its global economic growth forecast for 2014 to 2.8 percent from 3.2 percent because of the harsh U.S. winter and the impact of the Ukraine crisis. "If U.S. demand is weak, Japanese manufacturers would get a hit, so the World Bank's announcement is hurting the mood," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities. But he also said that selling should be short-lived , as it should be undercut by expectations for the Japanese government's restructuring plans. Sources told Reuters on Thursday that Japan plans to lower the corporate tax rate to below 30 percent within a few years starting from the next fiscal year, as part of Prime Ministerr Shinzo Abe's package of steps to boost Japan's growth potential. "The news itself is not surprising as the figure is in line with market expectations, but Abe's attitude to give details on what the stock market has been waiting for is positive," Fujito said. Exporters lost ground as the dollar traded at 102.05 yen , hovering near a one-week low of 101.86 yen set on Wednesday. Toyota Motor Corp dropped 1.0 percent, Honda Motor Co shed 0.9 percent and Panasonic Corp fell 1.1 percent. The broader Topix slid 0.8 percent to 1,229.31, and the new JPX-Nikkei Index 400 declined 0.8 percent to 11,189.67. (Editing by Richard Borsuk)
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