Nikkei at 1-wk closing low, concerns over output grow

 * Nikkei dips to 1-week closing low, Topix closes at
2-1/2-week low
 * Yen fall impact limited as production problems weigh -fund
manager
 * TEPCO tumbles to new low on compensation worries
 By Chikafumi Hodo and Antoni Slodkowski	
 TOKYO, April 6 (Reuters) - Japan's Nikkei stock average fell
to a one-week closing low, losing ground for a second straight
day on Wednesday as concerns grew about mounting production
losses for quake-hit manufacturers.	
 The benchmark index has regained more than half the losses
it posted since the March 11 devastating earthquake and tsunami
but market players said the rebound driven mainly by foreign
investors appeared to have run its course.	
   Although the dollar hit a six-month high of 85.52 yen
 in Asia trade, the impact of a weaker yen, normally
supportive for Japanese exporters, was limited as worries over
bottlenecks and disruptions to supply chains prevailed.   	
 "The market is increasingly getting concerned that
manufacturers may not be able to raise production to full
capacity for a long time despite a series of announcements that
they will resume operations," said Toru Hashizume, chief
investment officer at Stats Investment Management.	
 Analysts said the market has started pricing in disruptions
in production for blue-chip exporters such as Sony Corp 
and Toyota Motor Corp ahead of earnings announcements
for the business year that ended on March 31.	
 The benchmark Nikkei average finished the day down
0.3 percent or 31.18 points at 9,584.37, its the lowest close
since March 29.	
 The broader Topix closed down 0.9 percent or 7.55
points at 839.61, its lowest close since March 18. 	
 Although some said immediate support for the Nikkei lay
around 9,500, others said it could break that level easily.	
  "The Nikkei is heading for a second dip after the quake,
and will likely hit a double bottom between April and June as
operating losses for that period, particularly among automakers
and electronics firms, are going to be severe," said Masayuki
Kubota, a senior fund manager at Daiwa SB Investments Ltd. 	
 "Japanese firms, unlike their European and U.S. peers, issue
annual earnings forecasts, and with so many uncertainties
they'll either show very conservative estimates or none at all,"
he said.	
 Among exporters, Sony lost 1.2 percent to 2,591 yen but
Toyota managed to edge 0.2 percent higher to 3,265 yen.	
 After the close of trade Toyota said it would resume
production at one more domestic plant and estimated that it has
lost production of some 260,000 vehicles since the quake.
[ID:nL3E7F60YL]	
 Sony also said after the close that it had resumed partial
or full operations at five additional plants.	
 Shares in Tokyo Electric Power Co plunged more than
16 percent, at one point hitting an all-time low of 292 yen on
concerns the utility will face huge damages payments due to the
ongoing crisis at its stricken nuclear power plant.	
 Analysts said that with options prices settling this Friday
-- the first time since the quake -- Tokyo stocks will likely
come under more selling pressure in the near term as
difficulties in forecasting prospects for the economy were
increasingly sending investors to the sidelines.	
 "Investors have pulled out from Japanese stocks as they
can't tell what will happen in the future. I'm especially
concerned about the way retail investors have pulled out from
the market in recent weeks," said a senior trader at a foreign
brokerage house.	
 Oil-related shares such as Japan's largest oil and gas
developer, Inpex Corp , and trading houses such as
Mitsui Co succumbed to profit-taking after oil prices
rose on Tuesday to their highest since 2008 on supply
concerns. 	
 Inpex fell 1.2 percent to 635,000 yen after having advanced
more than 15 percent in March, while Mitsui Co was 1.3 percent
lower at 1,479 yen.	
 Shares of Oriental Land Co , the operator of the
Tokyo Disney Resort, fell 0.9 percent to 6,330 yen after the
Asahi newspaper reported there is a strong possibility the
reopening of the theme park complex will be delayed until at
least May.	
 The company said no decision has been made regarding the
reopening of the park.	
($1 = 84.900 Japanese Yen)	
	
 (Editing by Edwina Gibbs)	
 	
 

Nikkei at 1-wk closing low, concerns over output grow