Nikkei falls on exporters but steel firms gain

TOKYO, May 9 (Reuters) The Nikkei share average fell 0.30 percent on Tuesday as shares of Canon Inc. and Kyocera Corp.

declined due to investor concern about the impact of a stronger yen on exporters' earnings.

But shares of steel firms and other companies that are less exposed to currency risks advanced, helping to limit losses on the broader TOPIX index.

''While I had expected the yen to rise further than it did yesterday, without a doubt the direction is that of a strong yen,'' said Ken Masuda, senior dealer in equities at Shinko Securities.

''Investors are now buying stocks that aren't really influenced by the currency.'' The Nikkei was down 51.59 points at 17,240.08 as of 0102 GMT.

The TOPIX index was down 0.07 percent at 1,753.74.

The yen was at 111.36 to the dollar, after hitting an eight-month high of 110.97 on Monday.

A strong yen is a minus for companies that make the bulk of their sales outside of Japan, as it eats into profits when earnings from abroad are brought home.

Canon, which makes nearly 80 percent of sales outside of Japan, fell 0.6 percent to 8,690 yen.

Electronics components maker Kyocera declined 2.1 percent to 10,420 yen.

But steel maker Nippon Steel Corp. rose 1.2 percent to 437 yen. The company makes less than a quarter of its sales abroad.

Shares of exporter Toyota Motor Corp. bucked the trend, rising 0.2 percent to 6,780 yen.

The world's most profitable auto maker plans to launch a low-priced compact car in India by around 2010 to boost sales in emerging markets, the Nihon Keizai business daily said on Tuesday.

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