* Dubai news boosts mood, Nikkei trims earlier losses
* Construction firms turn positive after Dubai news
* Recent gainers drag; JAL, ANA gain after "open skies" deal
* BOJ tankan neutral, but lower capex a concern - analysts
By Aiko Hayashi
TOKYO, Dec 14 (Reuters) - Japan's Nikkei average trimmed
earlier losses to fall 0.2 percent on Monday after Dubai said it
had received $10 billion from fellow UAE member Abu Dhabi, easing
fears of a potential debt default that had rattled global
markets.
Kajima Corp <1812.T> and other construction firms turned
positive after the news.
They had been under pressure earlier after the Nikkei
business daily said the Dubai government and its affiliated firms
owe non-financial Japanese companies, including construction
firms, roughly $7.5 billion in credit that had not been collected
as of Oct. 31. []
"The market welcomed the news about the rescue of Dubai for
now, keeping the Nikkei above 10,000," said Hiroaki Kuramochi,
chief equity marketing officer at Tokai Tokyo Securities.
"But what's more critical for the market going forward will
be still currency moves and the government's economic steps."
The benchmark Nikkei <> shed 23.74 points to 10,084.13,
after earlier falling as low as 10,009.60. The index climbed 2.5
percent on Friday.
The broader Topix <> fell 0.7 percent to 882.53.
Dubai said in a statement it had received $10 billion from
Abu Dhabi to help it repay a $4.1 billion Islamic bond maturing
the same day. It said the excess would be used to cater to Dubai
World's needs up until the end of April 2010.
"We are here today to reassure investors, financial and trade
creditors, employees, and our citizens that our government will
act at all times in accordance with market principles and
internationally accepted business practices," Sheikh Ahmed bin
Saaed al-Maktoum said in the statement. []
Kajima rose 2.2 percent to 186 yen and Taisei Corp <1801.T>
added 1.3 percent to 161 yen.
Among other gainers, Japan Airlines Corp <9205.T> and rival
All Nippon Airways <9202.T> climbed after the United States and
Japan reached a landmark aviation agreement, a deal that eases
barriers to passenger and cargo services and opens up the
possibility for stronger alliances. []
JAL jumped 4.2 percent to 99 yen and ANA gained 1.2 percent
to 255 yen.
But recent gainers lost steam and dragged down the market.
Shares of Toyota Motor <7203.T> slipped 1.3 percent to 3,700 yen
and Shin-Etsu Chemical <4063.T> declined 1.4 percent to 5,040
yen.
Japanese business morale edged up further from a record low
hit earlier this year but remained negative for the sixth quarter
in a row, a Bank of Japan survey showed, as the economy slowly
recovers from its worst recession in six decades, but market
players shrugged it off. []
"The BOJ survey was line with expectations, but it reinforced
uncertainty about the future such as lucklustre capital spending,
in addition to currency moves. These factors are keeping the
market from rising further," said Yutaka Miura, a senior
technical analyst at Mizuho Securities.
(Editing by Chris Gallagher)
