Nikkei remains down

Japan's Nikkei average fell for the third session on Wednesday as fears that Greece may not meet its bond swap deadline sapped risk appetite, while Brazil's weaker annual growth added to fears of a slowdown in the global economy. Investors offloaded Tokyo's exporters, taking profit in blue chips that had stellar performances in February and shifting their attention to domestic-focused companies.
Among exporters, Toyota Motor Corp fell 1.2 percent, while Sony Corp shed 2.4 percent and machinery maker Komatsu Ltd lost 1.2 percent. Shippers also fell, with Mitsui O.S.K. Lines, Nippon Yusen KK, Kawasaki Kisen Kaisha Ltd down between 0.4 and 2.3 percent. The benchmark Nikkei eased 0.6 percent to a two-week closing low of 9,576.06.
Bridge builders outperformed the market and extended this week's rally after the Metropolitan Expressway Co Ltd convened its first panel meeting this week to consider upgrading highways in Tokyo. Japan Bridge Corp jumped 3.9 percent, P.S. Mitsubishi Construction gained 6.5 percent and railway and road construction contractor Tekken Corp soared 16.1 percent.
"This is the market correction that we've been waiting for. Investors are picking up small cap stocks like bridge builders but apart from that it's a difficult environment for domestic investors to reach their hands out to buy," said Masayuki Otani, chief analyst at Securities Japan. Market players said the long-anticipated correction was likely to last the week as investors delay buying ahead of the crucial US jobs number and a major settlement of options and futures in Tokyo on Friday.
The broader Topix lost 0.6 percent to 822.71. Trading volume dipped, with 2.25 billion shares changing hands, down from 2.5 billion shares on Tuesday. Japan's securities subindex was one of the worst sectoral performers, down 1.8 percent, with Nomura Holdings, Japan's top investment bank, dropping 1.9 percent and Daiwa Securities Group Inc losing 2.4 percent.
Banking groups Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group eased 1 percent and 0.7 percent, respectively. Mizuho Financial Group fell 1.5 percent. The Nikkei rallied more than 10 percent and marked its best February performance in decades last month, supported by accommodative policies by global central banks, including Bank of Japan's easing move that weakened the yen.
Reflecting investors' risk aversion, the Nikkei volatility index was last up 5.1 percent on Wednesday. The stronger yen also weighed on sentiment, with the dollar last trading at 80.79 yen, stepping back from a nine-month peak of 81.86 set on Monday, while the euro pulled further away from a recent high near 110.00 yen to 106.21. Brazil's economy grew just 2.7 percent in 2011 compared with 7.5 percent in 2010 and the Australian economy grew a disappointingly sluggish 0.4 percent last quarter, adding to worries after China cut its growth outlook earlier in the week.