* Nikkei dips after U.S. data tempers economic optimism
* T&D Holdings surges after brokerage "buy" rating
By Shinichi Saoshiro
TOKYO, June 4 (Reuters) - Japan's Nikkei stock average
slipped 0.3 percent on Thursday after weak U.S. jobs and mortgage
data tempered hopes for a recovery in the global economy.
Shipping lines such as Kawasaki Kisen Kaisha Ltd <9107.T> led
losses as they succumbed to profit-taking in the wake of recent
strong gains. But T&D Holdings Inc <8795.T> surged 6.5 percent
after UBS initiated the coverage of the insurance group with a
"buy" rating.
U.S. data released on Wednesday showed the service sector
contracted for an eighth straight month, half a million private
sector jobs were lost in May and mortgage applications falling
last week in the face of rising interest rates. []
That pushed the Standard & Poor's 500 Index <.SPX> 1.4
percent lower but market participants said losses in Tokyo were
limited as hopes for global recovery remained largely intact.
"Hopes for the economy had become too optimistic, and U.S.
data yesterday provided an opportunity for profit-taking," said
Yumi Nishimura, a deputy general manager of the investment
advisory section at Daiwa Securities SMBC.
"But the data did not change the view that a recovery is
still taking place, and investors' response has been calm."
The benchmark Nikkei <> fell 26.56 points to 9,715.11 in
active trade after falling as low as 9,654.45. It hit an
eight-month closing high on Wednesday for its sixth straight day
of gains. The broader Topix <> rose 0.1 percent to 915.16.
The shipping sub-index <.ISHIP.T> has dropped 6.9 percent
from an 8-month high touched on Tuesday, despite a further gain
by the Baltic Exchange's main sea freight index <.BADI>.
The index, which gauges the cost of shipping resources from
iron ore to grain, rose for its 23rd straight day on Wednesday,
boosted by expectations of strong demand for commodities.
Analysts said shippers were prone to profit taking after
rising ahead of others amid recent hopes for an economic
recovery.
Mitsui O.S.K. Lines <9104.T> fell 2.8 percent to 684 yen, and
fellow shipper Kawasaki Kisen <9107.T> lost 3.5 percent to 440
yen. Nippon Yusen <9101.T> dropped 3.7 percent to 448 yen.
But demand for resource-related shares like Sumitomo Metal
Mining <5713.T> remained strong with the non-ferrous metals
sub-index <.INFRO.T> climbing 1.2 percent to become one of the
biggest gainers among the sub-indexes.
"Sustained demand for resource-related stocks helped the
overall market rebound from lows," said Takahiko Murai, general
manager of equities at Nozomi Securities.
T&D Holdings gained to 2,790 yen after UBS rated it a "buy"
and assigned a target price of 3,400 yen, saying the insurers has
focused on markets with good growth potential and has steadily
improved its position in the life insurance sector.
Mitsubishi Motors Corp <7211.T> rose 7.8 percent to 165 yen
after the Asahi newspaper said the automaker will release plug-in
electric cars by 2013, based on its Pajero SUV.
The automaker said it has already made public its plan to
introduce plug-in electric cars within three to four years but it
has not determined specifics.
Drugmaker Daiichi Sankyo Co Ltd <4568.T> lost 1.3 percent to
1,718 yen. A consumer advocacy group and one of the drug's early
researchers said U.S. regulators should halt their review of the
bloodthinner drug candidate prasugrel it is co-developing with
Eli Lilly and Co <LLY.N>, citing concerns over the dose tested in
a major study. []
Trade was active, with 1.3 billion shares changing hands on
the Tokyo Exchange's first section compared with last week's
morning average of 1 billion.
Advancing shares outnumbered declining ones, 915 to 607.
(Reporting by Shinichi Saoshiro; Editing by Edwina Gibbs)
