* Gains early on yen pull back, halt in oil slide
* But gains shed as wariness ahead of earnings prevails
* U.S. corporate earnings, economic data stir caution
By Shinichi Saoshiro
TOKYO, July 10 (Reuters) - Japan's Nikkei average was little
changed Friday, giving back earlier gains as caution prevailed
over upcoming corporate earnings and economic indicators.
Some retailers of inexpensive items such as clothing chain
Fast Retailing <9983.T> rose after booking quarterly profit gains
as they found favour with price-conscious consumers, while chip
equipment maker Tokyo Electron <8035.T> gained on a jump in
orders.
The benchmark Nikkei <> rose as much as 0.9 percent in
early trade, as a pull back in the yen from recent peaks buoyed
shares of exporters.
However, the advance lost steam and the Nikkei inched down
3.6 points to stand at 9,287.46 by midday. The index rose to an
eight-month high of 10,170.82 in June but has declined steadily
since.
The broader Topix <> dipped 0.2 percent to 872.11.
Market participants said some of the selling was technical in
nature, caused by dealers' selling related to the monthly option
settlement known in Japan as the special quotation or "SQ".
Wariness also prevailed with U.S. earnings season set to go
into full swing.
"There is caution ahead of earnings releases by major U.S.
corporations. Key economic indicators due out in the United
States next week, like industrial output, are also a cause of
concern firmly capping prices," said Kenichi Hirano, operating
officer at Tachibana Securities.
Fast Retailing edged up 0.1 percent to 11,700 yen after
posting a 27 percent jump in third-quarter operating profit and
raising its annual forecast for a third time. []
Shoe retailer ABC Mart <2670.T> advanced 1.6 percent to 2,550
yen after it said first quarter operating profit rose 7.3
percent, helped by aggressive store openings and strong sales
growth in ladies shoes after expanding and marking down its
offering of cheaper brands.
Tokyo Electron, the world's No. 2 chip equipment maker, rose
2.8 percent to 4,360 yen after orders climbed 82 percent in
April-June from the previous quarter. []
"Bargain hunters are tip-toeing in after the market sank
rapidly over a short period of time, with relief coming from the
yen's stalled advance," said Koichi Ogawa, chief portfolio
manager at Daiwa SB Investments.
"But from a broader perspective the market is still in an
adjustment phase, with participants wanting to see how corporate
earnings pan out first."
Some exporters, hit the previous day in response to the yen's
surge to a five-month high against the dollar <JPY=>, gained as
the yen pulled back.
The dollar edged down 0.1 percent to 92.90 yen <JPY=> after
falling to around 91.80 earlier in the week. []
Toyota Motor Corp <7203.T> rose 0.3 percent to 3,410 yen and
Honda Motor Co <7267.T> gained 0.7 percent to 2,340 yen.
Other gainers included NOK Corp <7240.T>, Japan's top maker
of seals for automobiles, which jumped 8.3 percent to 1,163 yen
after Nikko Citigroup raised its rating to "buy" from "hold" and
its price target to 1,270 yen from 1,130 yen.
But Kawasaki Kisen <9107.T> and other shippers fell after the
Baltic Exchange's main sea freight index <.BADI>, which tracks
rates to ship dry commodities, hit a fresh six-week low on
Thursday with a lack of strong interest for cargoes weighing on
the market. []
Kawasaki Kisen dropped 3.3 percent to 350 yen, Mitsui OSK
Lines <9104.T> fell 2.7 percent to 543 yen and Nippon Yusen
<9101.T> retreated 3.1 percent to 381 yen.
Trade picked up on the Tokyo exchange's first section, with 1
billion shares changing hands, compared to last week's morning
average of around 955 million shares.
Advancing shares outnumbered declining shares by 794 to 771.
(Editing by Edwina Gibbs)
