Nikkei Ends Down Nearly 1 Pct

TOKYO (Reuters) - Japan's Nikkei average ended down nearly one percent on Wednesday, with technology stocks in the lead after a fall in the U.S. Nasdaq and a revenue forecast cut by blue-chip office machine maker Canon Inc
An unexpected downward revision to Japan's gross domestic product growth also helped prompt a pause in the bull run since late February but participants said the overall trend in the market was still up.

"The U.S. market fell and there was a lull in recent yen easing, so some profit-taking emerged," said Masaki Iso, chief investment officer at Yasuda Asset Management.

"But it's just a correction to recent rapid gains. The market is taking a breather before steeling itself for its next rise."

On the upside, several major banks marched higher after Goldman Sachs raised its rating on Mizuho Financial Group, saying loan growth for the megabank should turn positive in the first half of next business year.

The benchmark Nikkei closed down 0.86 percent at 11,433.24.

It was the biggest percentage fall since February 24. Between then and Tuesday, the Nikkei had climbed 8.3 percent on positive sentiment about the economy and a weaker yen.

The broader TOPIX index shed 0.52 percent to 1,128.40 after ending Tuesday at its highest since May 24, 2002.

Sony Corp led a decline in tech shares, falling 2.39 percent to 4,490 yen after concerns about earnings projections for U.S. tech companies sent New York's Nasdaq to its lowest finish this year on Tuesday.

Canon also fell over two percent to 5,450 yen after cutting its 2005 sales forecast by five percent on a stronger yen and price competition. Its closest domestic rival Ricoh Co. Ltd. sank 4.17 percent to 2,185 yen, after it reiterated that it would struggle to hit its target of two trillion yen in sales in the business year starting on April 1.

Decliners outnumbered gainers 782 to 632. Volume increased, with 1.66 billion shares changing hands on the first section, up from Tuesday's 1.51 billion.