Nikkei Falls On Yen, Credit Woes

Japan's Nikkei average fell 1.4 per cent Thursday after a recent sharp rebound, as credit troubles overseas weighed on investor confidence and a stronger yen pressured shares of exporters.

"Credit worries in places like Dubai and Spain are curbing investors' appetite to keep buying stocks, sending the market lower," said Soichiro Monji, a chief strategist at Daiwa SB Investments.

In light trade, the benchmark Nikkei lost 141.90 points to 9,862.82, falling for a third day after having gained nearly 12 per cent in a six-day rally to Monday. The broader Topix retreated 1.3 per cent to 873.90.

Suzuki dropped to 2,215 yen. Among other exporters, Honda Motor Co slipped 1.5 per cent to 2,930 yen and Toyota Motor Corp shed 1.6 per cent to 3,650 yen. But Sanyo Electric surged 10.7 per cent to 176 yen following the closure of Panasonic Corp's tender offer the previous day, with Panasonic expected to take a majority stake, leading to synergies between the two electronics firms.