Nikkei down 0.4 pct on US, Japan economy worries

TOKYO, June 24 (Reuters) - Japan's Nikkei stock average fell 0.4 percent on Tuesday, led lower by blue chips such as Fast Retailing Co (9983.T: Quote, Profile, Research, Stock Buzz) and Fanuc Ltd (6954.T: Quote, Profile, Research, Stock Buzz) on worries about the economic outlook in the United States and Japan.

The persistent strength of oil prices pushed up energy shares such as oil and gas field developer Inpex Holdings Inc (1605.T: Quote, Profile, Research, Stock Buzz).

"Yesterday, Wall Street ended virtually flat. But if you take a closer look, it's a lot worse than that. Auto and financial sectors were a damper in investors' minds," said Katsuhiko Kodama, senior strategist at Toyo Securities.


"Japan's not good either. Recent economic data points to weak fundamentals."

Government data showed on Monday that big Japanese firms were more pessimistic about business conditions in the three months to June, signalling that gloom was spreading across the economy. [ID:nT183666]

As of 0059 GMT, the benchmark Nikkei .N225 fell 52.34 points to 13,805.13. The broader Topix lost 0.1 percent to 1,346.83.

Trade is expected to remain thin, as investors hold off making bets ahead of the U.S. Federal Reserve meeting.

The Fed is expected to leave rates unchanged in its decision due out on Wednesday, and the market will focus on the accompanying statement for clues on the future course of monetary policy.

Apparel retailer Fast Retailing fell 2.1 percent to 10,050 yen and industrial robot maker Fanuc lost 1.8 percent to 11,590 yen, the two biggest drags on the Nikkei.

Inpex gained 1.6 percent to 1.31 million yen and Mitsubishi Corp (8058.T: Quote, Profile, Research, Stock Buzz) rose 2.1 percent to 3,490 yen. Mitsubishi and rival trading houses have stakes in overseas natural resources.

Drug maker Daiichi Sankyo (4568.T: Quote, Profile, Research, Stock Buzz) slid 3.2 percent to 2,745 yen after it and Eli Lilly and Co (LLY.N: Quote, Profile, Research, Stock Buzz) said on Tuesday the U.S. Food and Drug Administration has extended the review period for its blood thinner prasugrel by three months. (Reporting by Taiga Uranaka; Editing by Brent Kininmont)