Nikkei off 0.5 pct on US economy worry, realtors up

TOKYO, March 7 (Reuters) The Nikkei average fell 0.47 percent on Wednesday as shares of leading exporters such as Canon Inc were hit by continuing concerns about the outlook for the US economy.

But losses were limited as investors picked up stocks dependent on domestic demand such as real estate firm Sumitomo Realty&Development Co. Ltd.

Shares of Orient Corp. plunged nearly 14 percent to 146 yen after analysts issued relatively bearish comments following the consumer lender's announcement that it would tap shareholders for about 290 billion yen in financial aid.

The Nikkei was 79.88 points lower at 16,764.62. The broader TOPIX index lost 0.17 percent, or 2.94 points, to 1,689.60.

Exporters lost ground on concern that a decline in U.S. demand would crimp the earnings of Japan's leading exporters.

''The scenario that the U.S. economy would see a soft landing has been somewhat destroyed,'' said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments.

''Although a lot of people, such as policy makers, keep saying the U.S. economy is fine, investors remain worried.'' Haruo Otsuka, chief fund manager of the investment management department at Toyota Asset Management, said investors are now focusing on how much global risk money will shrink after market upheavals in the past week.

''But I don't expect the risk money to shrink drastically as a lot of excess cash is still flowing around in the market,'' he said.

Caution ahead of Friday's settlement of Nikkei futures and options contracts also weighed on the market, participants said.

REAL ESTATE SHARES UP The market got support from shares of property firms, drug makers and others that rely on the domestic market for the bulk of their sales as concern about the outlook for the U.S. economy was seen making exporters a tough buy.

''Right now it is domestic demand stocks rather than exporters,'' said Katsuhiko Kodama, a senior strategist at Toyo Securities.

Office equipment maker Canon, which makes nearly 80 percent of its sales overseas, dropped 2.4 percent to 6,070 yen.

Property firm Sumitomo Realty&Development gained 2.7 to 4,550 yen, becoming the biggest positive contributor to the Nikkei's gain.

Mitsui Fudosan Co. Ltd. climbed 3.5 percent to 3,270 yen.

Shionogi and Co. Ltd. added 3.4 percent to 2,275 yen.

Shares of Tomy Co. Ltd. jumped 6 percent to 814 yen after private equity firm Texas Pacific Group said on Tuesday it would acquire a 14.07 percent stake in Tomy, becoming the toy maker's second-largest shareholder.

Trade remained active, with more than 3 billion shares changing hands on the Tokyo stock exchange, well above last year's daily volume of about 1.6 million shares. Declining shares beat advancers by 817 to 768.

REUTERS PV PM1401