Nikkei flat as realtors tumble, banks sold

                                
  (Adds stocks, details)
                                
 By Elaine Lies
                                
 TOKYO, April 9 (Reuters) - Japan's Nikkei average was flat on
Wednesday, giving up earlier gains as Tokyu Land Corp <8815.T>
and other property firms tumbled on a weak property outlook and
banks were sold on credit fears.
Funai Electric Co Ltd <6839.OS> surged nearly 9 percent after
Philips Electronics <PHG.AS> said it will transfer its struggling
North American television business to the Japanese electronics
maker. [ID:nL08832352]
                                
 U.S. stocks were lower on Tuesday after savings and loan
company Washington Mutual Inc <WM.N> said it expects a
first-quarter net loss of more than $1 billion and is cutting its
dividend, dimming optimism that the worst of the credit crisis is
over.
                                
 "This has been a bit of a reality check, with recent gains
based entirely on hopes that the worst of the subprime crisis was
over," said Koichi Ogawa, chief portfolio manager at Daiwa SB
Investments.
                                
 "Even if it seems we're past the worst of the crisis, we're
facing bank earnings results from here on in and are going to be
seeing implications on balance sheets."
                                
 Tokyu Land fell 8.3 percent to 644 yen after Credit Suisse on
Tuesday cut its rating to "underperform" from "neutral", citing a
weak outlook for the property market due to an economic slowdown.
                                
 Japan's upper house of parliament approved acting Bank of
Japan Governor Masaaki Shirakawa as the central bank's permanent
head on Wednesday, bringing to a close a political impasse that
had left the post vacant since last month. [ID:nT209700]
                                
 But market players shrugged off the news.
                                
 "It may have a bit of an impact, but not much. Everyone's
pretty much fed up," said Katsuhiko Kodama, a senior strategist
at Toyo Securities. "It's all rather embarrassing."
                                
 The benchmark Nikkei <.N225> was down 0.04 percent at
13,245.28, erasing earlier gains. The broader TOPIX <.TOPX> fell
0.6 percent to 1,275.55.
                                
 PROPERTY A DRAG
                                
 Credit Suisse analyst Masahiro Mochizuki said in a research
note: "We still believe Tokyu Land is one of the real estate
developers most likely to survive the intense competition in the
industry over the long term.
                                
 "However, in view of the deterioration in the real estate
market, we expect a decline in earnings at the company."
                                
 Sumitomo Realty & Development <8830.T>, a major real estate
developer, dropped 5.2 percent to 1,996 yen and fellow realtor
Mitsui Fudosan Co Ltd <8801.T> fell 3.7 percent to 2,225 yen.
                                
 Overall, the real estate subindex <.IRLTY.T> fell 3.7
percent, making it the biggest loser among the subindices.
                                
 Financials also dragged the market lower, though not as
severely.
                                
 Japan's biggest brokerage, Nomura Holdings Inc <8604.T>, slid
2.2 percent to 1,576 yen, while No. 2 bank Mizuho Financial Group
<8411.T> lost 1.5 percent to 397,000 yen. Top lender Mitsubishi
UFJ Financial Group <8306.T> was down 1 percent at 958 yen.
                                
 Funai gained 8.7 percent to 3,740 yen on the Philips
announcement, which Goldman Sachs analyst Yuji Fujimori said he
viewed as positive, saying in a report that the deal represented
the abandonment of a policy of strengthening the Funai brand.
                                
 It could allow Funai to expand into large TVs using the
Philips brand and possibly lead to supplying Philips with TVs, he
added.
                                
 JFE Holdings Inc <5411.T> jumped 2.1 percent to 4,470 yen
after the world's third-largest steel maker said on Tuesday it
will join a blast furnace joint venture between South Korean peer
Dongkuk <001230.KS> and Brazilian miner Vale <VALE5.SA>.
[ID:nT168963]
                                
 Trade slowed on the Tokyo exchange's first section, with 673
million shares changing hands, compared with last week's morning
average of 824 million.
                                
 Declining stocks beat advancing ones by 882 to 663.
                                
 (Reporting by Elaine Lies; Editing by Michael Watson)