Nikkei dips, investors await earnings and data

* Nikkei hovers near 25-day moving average

* Investors await US corporate earnings this week

* Little direct impact from opposition win in local election

By Masayuki Kitano

TOKYO, July 6 (Reuters) - Japan's Nikkei stock average edged down 0.8 percent on Monday with investors lacking the conviction to push shares higher after the Nikkei's surge to an eight-month peak last month.

Retailer Aeon (8267.T) initially fell by more than 1 percent after the Nikkei business daily said the firm likely logged a 2 billion yen ($20.83 million) net loss for the March-May quarter, but later shed its losses to edge higher. [ID:nT265353]

Shipping firms including Nippon Yusen (9101.T) fell after the Baltic Exchange's main sea fright index .BADI, which tracks rates to ship dry commodities, dropped 4.14 percent to a three-week low of 3,520 points on Friday. [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 coming up 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.

The Nikkei .N225 dipped 75.20 points to 9,740.87, hovering just below its 25-day moving average, which now lies roughly around 9,800.

The broader Topix inched down 0.4 percent to 917.33.

Market analysts said there was little direct impact from an opposition-backed candidate winning an election for governor in central Japan on Sunday. The result added to speculation that lawmakers within the LDP would seek to replace unpopular Prime Minister Taro Aso while trying to delay a general election due by October. [ID:nT289639]

Nishimura at Daiwa Securities SMBC said Sunday's election result by itself was unlikely to be a direct trading factor for the Nikkei. But some investors may start to take a wait-and-see stance until the general election takes place, she said.

Shipping firms retreated, with Nippon Yusen falling 2.4 percent to 400 yen and Kawasaki Kisen (9107.T) down 2.1 percent at 371 yen.

Retailer Aeon was 0.2 percent higher at 897 yen after having fallen to as low as 878 yen earlier. (Editing by Joseph Radford)