Nikkei dips in light trade, awaits earnings, data
* Nikkei pulls back from 25-day moving average
* Investors await U.S. corporate earnings this week
* Limited impact from opposition win in local election
* Trade light, volume below last week's morning average
TOKYO, July 6 (Reuters) - Japan's Nikkei average fell 1.6 percent on Monday with investors lacking the conviction to push shares higher after the Nikkei's surge to an eight-month peak last month.
Aeon Co Ltd (8267.T) , Japan's second-biggest retailer, initially fell by more than 1 percent after the Nikkei business daily said it likely logged a 2 billion yen ($20.83 million) net loss for the three months to May, but later shed its losses to edge higher. [ID:nT265353]
Nippon Yusen (9101.T) and other shippers fell after the Baltic Exchange's main sea fright index .BADI, which tracks rates to ship dry commodities, dropped more than 4 percent on Friday, dented by softer demand for goods. [ID:nL3440007]
Moves in the Nikkei were subdued, with investors awaiting upcoming economic data and corporate earnings for hints on direction, market analysts said. "There are few reasons to actively sell shares when their prices take a dip because the economy is improving, albeit gradually," said Hideyuki Ishiguro, a supervisor in Okasan Securities' investment strategy department. But with U.S. and Japanese company earnings to be announced over the next few weeks, there is no compelling reason to chase share prices higher at this point, Ishiguro said.
The U.S. corporate earnings reporting season gets under way this week with bellwethers Alcoa (AA.N) and Chevron (CVX.N) posting quarterly scorecards. [RESF/US]
Alcoa's earnings could be a focal point, since the company's performance is seen as offering hints on broader economic conditions, said Yumi Nishimura, a deputy general manger at Daiwa Securities SMBC.
Another focal point in the near term will be the U.S. Institute for Supply Management's non-manufacturing index due later on Monday, market analysts said.
The Nikkei .N225 lost 154.80 points to 9,661.27, below its 25-day moving average, now around 9,800.
The Nikkei has lost some momentum after reaching an eight-month high of 10,170.82 in June, but is still nearly 40 percent above a trough hit in March.
The broader Topix fell 1.0 percent to 911.10.
Trading volume was light, with 0.8 billion shares changing hands on the Tokyo exchange's first section, down from last week's morning average of just below 1 billion shares. Continued...
