(Adds stocks and comments)
By Taiga Uranaka
TOKYO, June 24 (Reuters) - Japan's Nikkei stock average was
nearly flat at midday on Tuesday, as falls in blue chips such as
Fast Retailing Co <9983.T> on worries about the economic outlook
were offset by gains in energy shares on rising oil prices.
Trade remained thin as many investors held off making bets
before a U.S. Federal Reserve meeting. The Fed is expected to
keep rates unchanged in its decision due out on Wednesday, with
markets focusing on the accompanying statement for clues on the
future path monetary policy.
"Yesterday, Wall Street ended virtually flat. But if you take
a closer look, it's a lot worse than that. The auto and financial
sectors were a damper in investors' minds," said Katsuhiko
Kodama, senior strategist at Toyo Securities.
"Japan's not good either. Recent economic data points to weak
fundamentals," he said.
Government data showed on Monday that big Japanese firms were
more pessimistic about business conditions in the three months to
June, signalling that gloom was spreading across the economy.
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Japanese Economics Minister Hiroko Ota on Tuesday expressed
concern about the impact of weak corporate earnings on capital
expenditure.
"High raw material prices have already had a negative impact
on corporate earnings especially among small and midsize firms,"
Ota told a news conference after a cabinet meeting.
The benchmark Nikkei <> ended the morning session down
6.43 points at 13,851.04. The broader Topix <> rose 0.1
percent to 1,349.72.
Casual apparel retailer Fast Retailing fell 2 percent to
10,070 yen and industrial robot maker Fanuc Ltd <6954.T> lost 1.3
percent to 11,650 yen, the two biggest drags on the Nikkei.
ENERGY SHARES UP
Oil and gas field developer Inpex Holdings Inc <1605.T>
gained 1.6 percent to 1.31 million yen.
Mitsubishi Corp <8058.T> rose 2.3 percent to 3,500 yen.
Mitsubishi and rival trading houses have stakes in overseas
natural resources.
"Oil prices are rising again, as Saudi Arabia's output boost
was in line with expectations," said Noritsugu Hirakawa,
strategist at Okasan Securities.
"Trading house shares had been in a correction as oil prices
dipped, but they are gaining."
Drug maker Daiichi Sankyo <4568.T> slid 2.8 percent to 2,755
yen after it and Eli Lilly and Co <LLY.N> said on Tuesday the
U.S. Food and Drug Administration has extended the review period
for its blood thinner prasugrel by three months.
Chugai Pharmaceutical Co <4519.T> tumbled 2.9 percent to
1,669 yen after Credit Suisse cut its rating to "underperform"
from "neutral" and lowered its share price target to 1,500 yen
from 1,730 yen, following the end of the takeover-bid period for
parent company Roche Holding AG <ROG.VX> to purchase Chugai
shares on June 23.
Trade was thin, with 799 million shares changing hands
compared with last week's morning average of 919 million.
Advancers outpaced decliners 834 to 707.
(Editing by Chris Gallagher)
