* Nikkei's down 0.7 pct at 18,845 points
* Support seen at 18,700 - analyst
* Toyota drops on disappointing earnings forecast
* Mining shares underperform
By Ayai Tomisawa
TOKYO, Feb 7 Japan's Nikkei share average
dropped to a two-week low on Tuesday morning after global stocks
fell and a stronger yen hurt overall sentiment, while Toyota
Motor underperformed the market following a worse-than-expected
Investors remained cautious ahead of a meeting between
Japanese Prime Minister Shinzo Abe and U.S. President Donald
Trump on Feb. 10 and 11, with trade and currencies likely to be
on their agenda.
The Nikkei dropped 0.7 percent to 18,844.68 in
midmorning trade, after falling to as low as 18,805.32, the
lowest level since Jan 24.
Traders said that investors have become risk averse, with
global shares falling overnight on political and economic
uncertainties, while a fall in oil prices soured the mood.
In Asian trade, the dollar dropped to 111.625 yen,
its lowest since late November as investors sought refuge in the
safe-haven Japanese currency.
"Since the dollar-yen dropped its support line, stocks are
following suit," said Kazuhiro Takahashi, an equity strategist
at Daiwa Securities.
He said that for the short term, the Nikkei's downside
support is seen at 18,700.
Mining shares declined, with Inpex Corp dropping
1.7 percent and Japan Petroleum Exploration Co
declining 0.9 percent.
Oil fell on Monday as ample U.S. supplies and over-extended
speculative long positions outweighed bulish factors, notably
OPEC output curbs and rising tensions between the United States
Toyota Motor Corp underperformed, falling as much
as 2.8 percent after its new operating profit forecast undershot
The broader Topix dropped 0.4 percent to 1,514.57
and the JPX-Nikkei Index 400 shed 0.3 percent to
(Editing by Simon Cameron-Moore)