Tokyo, March 11 (Bloomberg) -- Japan's economy grew for a fourth quarter in the final three months of 2002, powered by overseas sales of companies such as Sony Corp. Prospects of a war in Iraq may already be hurting growth, economists said. Gross domestic product rose 0.5 percent, seasonally adjusted, from the third quarter, matching an earlier estimate. From a year earlier, the economy grew 2.6 percent in the fourth quarter, more than an earlier estimate of 2.4 percent growth. Growth in the world's No. 2 economy slowed from a revised 0.8 percent in the third quarter. Concerns that the U.S. will attack Iraq are denting demand for Japanese exports and hurting consumer spending, which makes up more than half the economy. That's undermining a recovery from the third recession in a decade. ``Confidence at home is waning because there's so much uncertainty over a possible war in Iraq, and the stock market slump'' adds to the pessimism, said Takunori Kobayashi, chief economist at Daiwa Institute of Research Ltd. Japanese stocks fell, led by exporters such as Canon Inc., and bonds rose after a drop in U.S. shares added to concern that an attack on Iraq will sap world economic growth. The Nikkei 225 Stock Average fell 13.06, or 0.2 percent, to 8029.20 as of 10:45 a.m. in Tokyo. The average earlier dipped below 8000 and is headed for its lowest close since February 1983.
Bonds Gain
Japanese bonds rose, pushing yields down to a record. The No. 247 bond, which carries a 0.8 percent coupon and matures in 2013, rose 0.187 to 100.605 as of 10:45 a.m. Its yield fell 2 basis points to 0.735 percent, the lowest since Japan began selling 10-year debt in 1972. //www.quote.bloomberg.com