Nikkei falls as Honda, others shed gains

TOKYO, Mar 16 (Reuters) The Nikkei average fell 1.12 percent on Friday as investors locked in profits in recent gainers such as Honda Motor Co. Ltd. on lingering concerns about the U.S. economic outlook before fresh data.

Shares of Nissan Motor Co. Ltd. lost 1.2 percent to 1,281 yen after the car maker said it would reduce production at two car assembly plants in Japan for three months starting in April to adjust inventory levels and prepare for a seasonal downturn in demand.

''The Japanese market can move very little as the U.S. market has not completely regained ground, though it's calmed down somewhat,'' said Kenichi Hirano, operating officer at Tachibana Securities.

''Investors will continue to watch the outlook for the U.S.

economy, especially important economic indicators such as CPI due later today.'' U.S. consumer price index and industrial production data for February are due on Friday.

Asian stocks fell sharply early on Wednesday, with the Nikkei losing more than 2 percent after Wall Street had its second-worst sell-off this year on growing concerns about the U.S. subprime mortgage market, which serves borrowers with poor credit histories and charges higher interest rates.

The Nikkei average was down 188.51 points at 16,671.88 as of 0040 GMT. The broad TOPIX index declined 1.25 percent to 1,673.01.

Shares of recent gainers fell with Honda losing 1.5 percent to 4,090 yen and Sumitomo Realty&Development Co. Ltd. dropping 2.8 percent to 4,500 yen.

Another point of focus, Nikko Cordial Corp., was flat at 1,685 yen after Kyodo news agency reported Mizuho Financial Group , the ation's No.2 bank, plans to tender Nikko shares, without specifying if Mizuho would sell its entire 4.8 percent holding to Citigroup REUTERS AD PM0716