Tokyo stocks down as Fast Retailing, Toyota fall

TOKYO, Nov 6 (Reuters) Tokyo's Nikkei average lost 0.72 percent by midmorning on Monday as Fast Retailing Co. fell on sluggish sales and exporters faltered on concerns the Federal Reserve may resume raising interest rates.

Marui Co. tumbled 11.65 percent, becoming the biggest loser on the main board, after the department store operator slashed its profit forecast due to weak sales and for reserves against lawsuits by borrowers in its finance business.

Even Toyota Motor Corp. came under pressure despite a fall in the yen and a weekend newspaper report that its group operating profit will hit 2.2 trillion yen (.64 billion) for the year to next March, beating its forecast by 16 percent.

Major tech and auto exporters were weaker following a drop on Wall Street after jobs data showing strength in the U.S. economy raised worries the Fed may see a need to raise rates, choking off growth in a key market for Japanese goods.

''The market has for the most part has already factored in good earnings reports,'' said Kazuhiro Takahashi, general manager of equity marketing at Daiwa Securities SMBC. ''The Nikkei should remain weak going into the afternoon. But it is likely to rebound some to the 16,300 level.'' As of 0050 GMT, the Nikkei was down 117.49 points at 16,232.53, extending the previous session's 0.15 percent fall to a four-week closing low. The broader TOPIX index was down 0.88 percent at 1,604.84.

Fast Retailing fell 2.3 percent to 10,650 yen after it said same-store sales at its Uniqlo casual wear chain fell 4.5 percent in October because mild weather hurt demand for its autumn and winter clothing items.

Among blue-chip exporters, top automaker Toyota fell 0.86 percent to 6,900 yen while electronics components maker Kyocera Corp. gave up 0.96 percent to 10,310 yen, mirroring a slight decline in Wall Street technology shares.

Konica Minolta Holdings Inc. jumped 9.34 percent to 1,710 yen after reporting a better-than-expected profit for the April-September first half and raising its annual forecast, helped by strong colour copier sales and a weaker yen.

Reuters SBA VP0650