Nikkei slips 0.7 pct on global recession fears

By Rika Otsuka

TOKYO (Reuters) - Japan's Nikkei average slid 0.7 percent on Wednesday as fears of global recession and a stronger yen outweighed the positive impact from overnight gains in U.S. shares.

Mazda Motor Corp was little changed at 184 yen after cash-strapped Ford Motor Co said on Tuesday will end 12 years of control of Mazda through the sale of a 20 percent stake in the Japanese carmaker for around $540 million.

Traders said investors welcomed the fact that Ford would place the shares it plans to sell with Mazda and some Mazda business partners. "The stock market is under pressure as both the dollar and the euro have slipped against the yen and as foreign investors were net stock sellers this morning," said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities.

"On the other hand, investors are hunting bargains, helping underpin share prices," Nishi said.

The benchmark Nikkei fell 59.17 points to 8,269.24, after having slipped 2.3 percent the previous day.

The broader Topix slipped 0.6 percent to 830.11.

The yen rose on Wednesday as investors remained worried about a deepening global recession and returned to the safety of the Japanese currency.

Many exporters were hit by a stronger yen. Tokyo Electron Ltd, the world's No.2 supplier of equipment used to make semiconductors, dropped 3.3 percent to 2,820 yen.