(Adds stocks, details)
* Resource-linked shares climb on high oil prices
* Nikkei heading for worst first half since 1995
* Scattered weakness in exporters also weighs
By Elaine Lies
TOKYO, June 30 (Reuters) - Japan's Nikkei stock average edged
up 0.3 percent on Monday as high oil prices buoyed trading houses
such as Mitsubishi Corp <8058.T> and other energy-linked shares
despite sparking worries about the global economy, while
retailers dragged on the market.
Scattered weakness in blue-chip exporters such as Sony Corp
<6758.T> also weighed amid thin trade ahead of Tuesday's release
of the Bank of Japan's tankan survey of business sentiment.
But major banks managed to beat off selling after their U.S.
peers slid on worries about more credit losses after Lehman
Brothers forecast Merrill Lynch <MER.N> would write down another
$5.4 billion in the second quarter, while Moody's Investors
Service said it may cut Morgan Stanley's <MS.N> credit rating.
"The Nikkei fell for seven straight sessions so it's only
natural for it to rebound a bit at this point," said Nagayuki
Yamagishi, a strategist at Mitsubishi UFJ Securities.
"Wall Street may still see some gyrations, but not endlessly.
I think if it falls another 200 points, that will likely be the
bottom."
Market players said the Nikkei was also supported by
window-dressing ahead of the end of the month, which also marks
the end of the first quarter for many Japanese companies.
The Nikkei appears set for its worst first half since 1995,
but it has so far gained around 8.5 percent this quarter.
The benchmark Nikkei <> rose to 13,589.40, a gain of
45.04 points, on target to snap a seven-day losing streak. The
broader Topix <> was up 0.7 percent to 1,329.60.
Oil rose over $1 on Monday, off the high just under $143 hit
on Friday but back above $141, with U.S. light crude for June
delivery <CLc1> at $141.77 at 0211 GMT, bolstering trading houses
and energy-linked firms on buying by day traders.
"This is helping to buoy the market, but likely to be a very
temporary move at best," said Masayoshi Okamoto, head of dealing
at Jujiya Securities.
Active buying was expected to be inhibited by Tuesday's
announcement of the Bank of Japan's tankan quarterly report of
business sentiment and U.S. jobs data later in the week.
ENERGY ENERGISED, RETAIL REELING
Mitsubishi Corp, Japan's largest trading house, was the
biggest contributor to the Nikkei 225 by index weight, rising 3.2
percent to 3,500 yen.
Among other strong energy-linked shares were oil and gas
field developer Inpex Holdings Inc <1605.T>, which rose 3.9
percent to 1.33 million yen and Japan's largest oil distributor,
Nippon Oil Corp <5001.T>, surged 6.3 percent to 706 yen.
Showa Shell Sekiyu <5002.T>, another major oil distributor,
climbed 2.8 percent to 1,168 yen.
Takashimaya Co Ltd <8233.T> fell 1.5 percent to 961 yen after
the department store operator's first-quarter operating profit
fell 8 percent and it cut its annual sales outlook.
[]
Goldman Sachs analyst Sho Kawano lowered his earnings
estimates and cut his target price on the retailer by 9 percent
to 1,000 yen from 1,100 yen.
Fellow department store operator Isetan Mitsukoshi <3099.T>
also fell after Takashimaya's results confirmed a tough operating
environment, becoming one of the top percentage losers among the
Nikkei 225 after it lost 4.4 percent to 1,151 yen.
Scattered selling of blue-chip exporters saw Sony Corp
dragged down by 2.5 percent to 4,720 yen and Kyocera Corp
<6971.T> falling 1.5 percent to 10,070 yen. Industrial robot
maker Fanuc Ltd <6954.T> slid 1.1 percent to 10,580 yen.
Megabanks, though, pared earlier losses to end up, with
Mizuho Financial Group <8411.T> gaining 0.6 percent to 504,000
yen and Mitsubishi UFJ Financial Group <8306.T> up 1.6 percent at
948 yen.
Trade was light on the Tokyo exchange's first section, with
772 million shares changing hands, compared with last week's
morning average of 848 million.
Advancing stocks beat declining ones by 961 to 637.
