Japan stocks dip on financials; resources support

(Updates to midmorning)

TOKYO, April 15 (Reuters) - Japan's Nikkei stock average dipped 0.2 percent on Tuesday, building on a two-week closing low hit the previous day as worries about financials hurt the sector, but resource-related shares such as trading house Mitsui Co Ltd (8031.T: Quote, Profile, Research, Stock Buzz) helped support the market after oil marked a record closing high.

Wachovia Corp (WB.N: Quote, Profile, Research, Stock Buzz), the No.4 U.S. bank, said on Monday that it would cut its dividend, eliminate jobs and raise capital of $7 billion after becoming the latest casualty of the global credit crunch. [ID:nN14343221]

"After the news about Wachovia, investors couldn't actively buy financials, but they now appear somewhat willing to buy on dips as they are factoring in weak results from the sector," said Zenshiro Mizuno, a senior managing director of the equity trading division at Marusan Securities.

"Still, trade will likely be quiet as investors want to see results from banks such as Citigroup."

The rocky ride for the U.S. stock market is expected to continue this week, with earnings reports from JPMorgan Chase (JPM.N: Quote, Profile, Research, Stock Buzz), Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz), Citigroup (C.N: Quote, Profile, Research, Stock Buzz) and other large banks and financial services companies, as well as reams of economic data.

The benchmark Nikkei average .N225 fell 19.24 points to 12,898.27 as of 0028 GMT. It fell 3.1 percent on Monday to book its lowest close since April 1.

The broader TOPIX index inched lower by 0.3 percent or 3.71 points to 1,242.53.

Japan's financial shares slid after nagging concerns about bank profits hit U.S. peers.