Nikkei edges higher on U.S. services data, ECB eyed
* Nikkei rises 0.5 pct ahead of ECB; G7 takes no action * Olympus up on report Panasonic will take stake * Nintendo falls as investors disappointed with new console TOKYO, June 6 (Reuters) - Japan's Nikkei share average advanced on Wednesday, moving further from a six-month closing low on Monday after data showed the U.S. services sector improved in May, helping to offset concerns over the euro zone debt crisis. The Nikkei rose 0.5 percent to 8,425.80, heading back above its five-day moving average near 8,417, while the broader Topix index added 0.2 percent to 709.33 after falling below the 700-mark to a more than 28-year low on Monday. Finance minister from the Group of Seven major economies discussed progress towards financial and fiscal union in Europe, but took no major action. Although investors remain cautious, with Spain saying it was losing access to credit markets and that Europe should help revive its banks, they may avoid placing too many bearish bets ahead of a European Central Bank meeting later in the day. U.S. Federal Reserve Chairman Ben Bernanke will also speak on the U.S. economy before a congressional committee on Thursday. "I am covering some short positioning. A lot of technical indicators are showing buying opportunity. In addition, valuations are extremely cheap," said Yasuo Sakuma, portfolio strategist at Bayview Asset Management. "However, we remain cautious. I don't want to bet on extreme long position or extreme short position. I am in a neutral position." Olympus Corp climbed 2.5 percent after Kyodo news agency said Panasonic Corp is making final arrangements to provide up to $635 million in capital to the scandal-hit camera and endoscope maker. The move will make Panasonic, which has been hobbled by losses in its TV business, the top shareholder in Olympus, which has been hit by a massive accounting scandal. Panasonic shares eased 0.4 percent. Nintendo Co Ltd shed 2.5 percent, however, as investors were disappointed with its new Wii U games console, with one trader saying that it wasn't exciting and "sounds like a Nintendo iPad," referring to Apple's popular tablet. Social gaming firm Gree Inc, a heavily shorted stock, lost 0.7 percent after Tuesday's 14.3 percent rebound. It was the most actively traded stock on the main board by turnover. Short interest in Gree was high, with 86.37 percent of the stock that is available to be borrowed out on loan as of June 4, according to research firm Data Explorers. Rival DeNA Co Ltd added 0.8 percent after it and Renren Inc, China's social network site, said after the market close on Tuesday that they have entered into an alliance to bring mobile games to Renren users. It was the third-heavily traded stock on the main board.
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