* Nikkei on track for weekly, monthly loss, though up for
* Bank, financial shares slip on concerns about Deutsche
TOKYO, Sept 30 Japan's Nikkei slipped on Friday
after fears about the stability Deutsche Bank shook Wall Street
and took a toll on financial shares, with the Japanese stock
index on track for weekly and monthly losses.
By the end of morning trade, the Nikkei was off 1.6
percent, or 258.10 points, at 16,435.61, down 1.9 percent for
the week and 2.6 percent for September. It was still up 5.5
percent for the July-September quarter.
Wall Street indexes posted sharp declines on Thursday, with
Deutsche Bank's U.S.-listed stock skidding 6.7 percent as
deepening concerns over the stability of the lender cast a cloud
over markets around the world.
"Financial and bank stocks are down today, which is dragging
down the overall market, as well as sentiment," said Ayako Sera,
market economist at Sumitomo Mitsui Trust Bank.
"The latest fears remind investors of the Lehman shock," she
said, referring to the 2008 bankruptcy of the U.S. financial
firm Lehman Brothers that sent shockwaves around the world.
"This time, there is supposed to be a safety net in place to
prevent a major impact on global markets, but there are still
many unknowns about this current situation, and a shortage of
information," she said.
The banking subindex slipped 1.9 percent and the
securities subindex lost 1.8 percent, while the
subindex of other financials was down 2.6 percent and
the insurance subindex shed 2.3 percent.
Nissan Motor Co was down 2.5 percent after its CEO
Carlos Ghosn warned the automaker could scrap a potential new
investment in the country's biggest car plant if Britain did not
pledge compensation for any tax barriers resulting from its
decision to leave the European Union.
Other factors also weighed on market sentiment.
"People are very nervous going in to next week, with risk
factors including the U.S. election and economy, with payrolls
coming out next week," said Stefan Worrall, director of Japan
equity sales at Credit Suisse in Tokyo. "So it's normal to
expect volatility in an air pocket of uncertainty."
A spate of mixed economic data released before the market
opened underscored the challenge faced by the government and
Bank of Japan, to meet inflation targets and stoke
"Investors are moving away from Japanese stocks due to their
perception that no structural reforms such as lower taxes or
reduced tariffs are on the legislative table for economic
policies," said Hiroki Allen, chief representative of Superfund
Japan in Tokyo.
The broader Topix was down 1.5 percent at 1,322.95,
while the JPX-Nikkei Index 400 also slipped 1.5
percent to 11,841.05.
(Reporting by Tokyo markets team; Editing by Shri Navaratnam)