Nikkei edges up on short-covering, eyes on China

TOKYO Aug 18 (Reuters) - Japan's Nikkei stock average drifted higher on Tuesday, a day after its biggest percentage fall since March, though investors remained wary about concern over the global economic recovery and the health of Chinese share markets. Mitsubishi Corp (8058.T) and other trading houses lost ground after metals prices fell, but support emerged from short-covering following Monday's sharp falls.

The benchmark Nikkei .N225 gained 0.4 percent or 38.80 points to 10,307.41. On Monday it fell 3.1 percent, its biggest one-day percentage drop in nearly five months.

The broader Topix .TOPX edged up 0.1 percent to 950.46. (Reporting by Elaine Lies)