Nikkei dips 0.2 pct, Orix and ANA slide
* Orix, ANA fall after sources say they will issue shares
* ANA announces details of public offering after close
* After close, Shinsei and Aozora say to merge at 1:1 ratio
* Construction machinery makers rise after China PMI
* Reaction to tankan business sentiment survey mixed
TOKYO, July 1 (Reuters) - Japan's Nikkei average slipped 0.2 percent on Wednesday, with Orix Corp (8591.T) and All Nippon Airways (9202.T) sliding after sources said the firms were set to announce large public share offerings.
But construction machinery makers such as Komatsu (6301.T) gained after China's official purchasing managers' index (PMI) for June showed the country's economic recovery is on more solid ground.
Response to the Bank of Japan's quarterly survey of business confidence was mixed, with some analysts saying it had no impact on the market, but others, noting lagging capital spending, saying it was slightly negative. [JPBCLG=ECI]
The Nikkei had risen around 1 percent at one stage but quickly shed its gains in the afternoon.
"It seems there was some large-lot selling in futures," said a portfolio manager at a Japanese asset management firm.
While the reason for such selling was unclear, such moves may reflect profit-taking or hedge-selling by institutional investors, the portfolio manager said.
The Nikkei .N225 fell 18.51 points to 9,939.93, beginning the new quarter on a negative note.
In the April-June quarter, the benchmark index jumped 23 percent for its best quarterly gain in about 14 years.
The broader Topix index shed 0.2 percent or 1.46 points to 928.30 on Wednesday.
The BOJ's tankan corporate survey showed that confidence among big manufacturers pulled back from a record low hit three months ago, as exports and output improved from a severe downturn late last year. [JPBCLG=ECI] Continued...
