Nikkei falls 1.5 pct on profit-taking; Toshiba down

TOKYO, Apr 12 (Reuters) The Nikkei average fell for a third session on Wednesday, posting its biggest one-day fall in over a month as technology and auto stocks succumbed to profit- taking due to concerns higher oil prices could slow global economic growth.

Toshiba Corp. fell after U.S.-based Lexar Media Inc. said it had filed a trade complaint against the electronics conglomerate for infringement of intellectual property rights The Nikkei was down 1.47 percent or 255.58 points at 17,162.55.

It was its biggest percentage fall since March 3.

The Nikkei hit its highest close since July 2000 on Friday, having risen nearly 2,000 points from early March.

The TOPIX index was down 1.54 percent at 1,742.89.

Increased tensions over Iran's nuclear programme have helped send oil prices above a barrel closer to the all-time .85 high hit last August.

Higher oil prices are feared hurting consumer and corporate spending, analysts say, although stronger demand for oil and other natural resources, especially from China and other developing countries, is behind the recent gains in commodities prices.

''The Tokyo market has risen too far too fast, so it's reasonable to take a breather. A set-back in overseas markets gave a cue for the selling,'' said Yoshihisa Okamoto, senior vice president at Fuji Investment Management.

Okamoto said a combination of higher oil prices and geopolitical or other risks from time to time prompted a change in global capital flows, resulting in a sell-off in equities.

''In the past, that kind of market corrections were short-lived and funds fled from equities returned as a due course. But it is yet to be known whether that is happening again this time,'' he said.

Sony Corp. fell 2.5 percent to 5,430 yen. Toshiba was down 2.6 percent at 708 yen.

Toyota Motor Corp., the world's second-biggest auto maker, fell 1.8 percent to 6,700 yen. Toyota hit a lifetime high of 6,880 yen on Tuesday.

Mitsubishi UFJ Financial Group Inc., the most active issue by value, was down 3.1 percent at 1.85 million yen, extending losses since it hit a lifetime high of 1.95 million yen on Friday.

A seeming correction in the Tokyo market's bull run hurt brokerage shares, with Japan's No.1 brokerage Nomura Holdings Inc.

falling 1.3 percent to 2,685 yen.

Earnings concerns following Tuesday's profit warning by Sankyo-Tateyama Holdings Inc., Japan's second-biggest maker of aluminium construction materials, took a toll on its peers.

Sankyo-Tateyama sank 4.3 percent to 290 yen.

The company, headquartered in Takaoka city, northern Japan, on Tuesday lowered its group net profit forecast for the year to May 2006 by almost 60 percent due to higher material costs.

The metal products sector subindex IMETL.fell 2.7 percent, the worst performer among 33 industries on the Tokyo bourse's first section.

But Daiichi Sankyo Co. Ltd., Japan's second-largest drug maker, rose 1.3 percent to 2,840 yen after earlier hitting a lifetime high of 2,910 yen.

Lehman Brothers in a report on Wednesday raised its investment rating on the stock to ''overweight'' from ''equal weight'', saying the company's earnings are expected to bottom in the year to March 2007.

Trading volume rose to 1.96 billion shares, yet lower than last year's daily average of 2.07 billion. Decliners outnumbered gainers 1,416 to 217.

REUTERS PV ND1238