Japan Nikkei dips as retailers sold; energy firms up

(Updates to midmorning)

By Elaine Lies

TOKYO, June 30 (Reuters) - Japan's Nikkei stock average edged down 0.2 percent on Monday, as selling of retailers such as Takashimaya Co Ltd (8233.T) was offset by buying of energy-linked stocks after oil rose to a record high near $143 a barrel on Friday, sparking fears about the global economy.

Market players said the Nikkei was struggling against the influence of a Friday fall in U.S. stocks, but the fact that the Nikkei fell for the last seven straight trading days could mean that shares were ready to rebound.

"Since some of the news on which Wall Street fell was already out in Asian time, it's possible that the Nikkei just anticipated the U.S. fall and won't fall that much today," said Masayoshi Okamoto, head of dealing at Jujiya Securities.

"Day traders appear to be buying energy-linked shares, helping to buoy the market, but this is likely to be a very temporary move at best."

Some investor window-dressing ahead of the end of the month, as well as the end of the first quarter for many Japanese companies, also appeared to be providing support.

After opening higher, the Nikkei .N225 moved between positive and negative territory. By 0033 GMT it was down 0.2 percent at 13,522.38, having shed 21.98 points. The broader Topix rose 0.1 percent to 1,321.99.

Retailers were battered and with Takashimaya falling 2.5 percent to 952 yen after the department store operator's first-quarter operating profit fell 8 percent and it cut its annual sales outlook. [ID:nT272SUYQR]

Goldman Sachs analyst Sho Kawano lowered his earnings estimates and cut his target price on the retailer by 9 percent to 1,000 yen from 1,100 yen.

Fellow department store operator Isetan Mitsukoshi (3099.T) also fell after Takashimaya's results confirmed a tough operating environment, becoming the biggest percentage loser among Nikkei 225 components with a 5.2 percent fall to 1,142 yen.

Energy-linked shares countered the retailers, with top trading house Mitsubishi Corp (8058.T) climbing 2.4 percent to 3,470 yen and Mitsui & Co (8031.T) up 1.3 percent to 2,320 yen. Oil and gas field explorer Inpex Holdings Inc (1605.T) climbed 2.3 percent to 1.31 million yen and Nippon Oil Corp (5001.T), Japan's largest oil distributor, surged 4.8 percent to 694 yen.

Showa Shell Sekiyu (5002.T), another major oil distributor, climbed 2.6 percent to 1,167 yen. (Editing by Rodney Joyce)