Nikkei slips as Ukraine worries curb risk appetite; Olympus shines

Sun May 11, 2014 10:06pm EDT

* Olympus soars as forecast seen conservative - traders
    * DeNA tumbles 21 pct on weak April-June forecast

    By Ayai Tomisawa
    TOKYO, May 12 (Reuters) - Japanese stocks slipped on Monday
morning as worries about the Ukraine crisis curbed investors'
appetite for risk, although companies that have issued upbeat
earnings forecasts, such as Olympus Corp, attracted
buying.
    The benchmark Nikkei stock average was down 0.2
percent at 14,167.83 as of 0155 GMT, trading below its 25-day
moving average of 14,391.77.
    Analysts said trading volume may stay low as investors stay
wary towards developments in Ukraine amid fears the country is
sliding into civil war. Pro-Moscow rebels on Sunday declared a
resounding victory in a referendum on self-rule for eastern
Ukraine. 
    "We may have more concerns than reasons to be optimistic
about the market until June, when the prime minister (Shinzo
Abe) is scheduled to flesh out the details of the growth
strategy," said Takuya Takahashi, a strategist at Daiwa
Securities.
    Takahashi added that individual earnings can set the
direction of the market for the time being.
    DeNA Co tumbled 21 percent to 1,287 yen - its
lowest since November 2009 - and was the second-most traded
stock by turnover, after the smartphone gaming producer said it
expects a big decline in its sales and profits for the
April-June quarter.
    But Olympus soared as much as 4.9 percent to a one-week high
after forecasting a 19.8 percent rise in operating profit to 88
billion yen for the year ending in March 2015. The figure was
below the median forecast of 94.4 billion yen in a Thomson
Reuters Starmine poll of 17 analysts. But traders said the
company's forecast is seen as too conservative given that it is
aiming to strengthen its profitable medical business.
    Exporters weakened as the dollar stayed below 102 yen
.
    Toyota Motor Corp fell 0.5 percent, Sony Corp
 shed 0.2 percent and Nikon Corp dropped 0.4
percent.
    The broader Topix shed 0.3 percent to 1,162.37,
while the new JPX-Nikkei Index 400 dropped 0.3
percent to 10,576.31.

 (Editing by Chris Gallagher)
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