Nikkei falls to three-month low as exporters slide

TOKYO, May 31 (Reuters) The Nikkei slid 1.83 percent on Wednesday, after earlier dropping to a three-month low, as shares of Sony Corp. and other exporters lost ground on concerns about a potential slowdown in the key U.S. market.

Worries about the strength of consumer spending at home dented shares of Japanese retailers, with Fast Retailing Co. Ltd.

dropping more than 2 percent. A sharp decline in U.S. stocks also hurt overall sentiment.

''There is no reason for Tokyo to fall this much by itself.

When we got up this morning we were greeted by a (U.S.) sell-off,'' said Masayoshi Okamoto, head of dealing at Jujiya Securities.

Shares of technology firms and other exporters with a high percentage of foreign ownership were among those declining.

As the market in their home county falls, U.S. investors become more averse to taking risks abroad, Okamoto added.

The Nikkei was down 289.67 points at 15,569.78 as of 0113 GMT, after earlier falling to 15,485.72, its lowest level since February.

The TOPIX index was down 1.66 percent at 1,586.20.

Sony was down 2.7 percent to 5,050 yen. Chip-gear maker Tokyo Electron Ltd. fell 3.2 percent to 7,900 yen.

Retailers continued their decline, after data on Tuesday showed that Japan's overall household spending fell more than expected in April from a year earlier.

Clothing-store operator Fast Retailing fell 2.5 percent to 9,820 yen.

Reuters VJ VP0730