Nikkei nearly flat on profit-taking, eyes on U.S.
(Updates to midmorning)
TOKYO, May 9 (Reuters) - The Nikkei share average was nearly flat on Wednesday as investors took profits in technology shares such as Fanuc Ltd. (6954.T) on a strengthening yen and before a U.S. decision on interest rates.
With a lack of domestic news to trade on, investors are waiting for the outcome of a Federal Reserve interest rate-setting meeting on Wednesday, said Hiroaki Kuramochi, a managing director at Bear Stearns.
The United States is one of the biggest markets for Japanese goods.
"Gains are capped by profit-taking in tech shares, while losses are limited by banks and defensive stocks such as drugs," he said.
Moody's said on Friday it upgraded its ratings of Mitsubishi UFJ Financial Group Inc. (8306.T), Mizuho Financial Group Inc. (8411.T) and Sumitomo Mitsui Financial Group Inc. (8316.T) to Aa2 from A1, mainly reflecting the banks' improved financial fundamentals.
The Nikkei .N225 edged down 0.15 percent or 25.81 points to 17,631.03 as of 0110 GMT. The broad TOPIX index shed 0.13 percent to 1,730.34.
The dollar changed hands at 119.76 yen JPY=, down a touch from late New York trade.
A stronger yen weighs on exporters as it cuts the value of their overseas sales when translated back into the Japanese currency.
Industrial robot maker Fanuc fell 1.3 percent to 11,350 yen, and Tokyo Electron Ltd. (8035.T) shed 1.3 percent to 8,410 yen.
Among gainers, Mitsubishi UFJ Financial Group rose 0.8 percent to 1.33 million yen, while drug maker Daiichi Sankyo Co. Ltd. (4568.T) added 0.9 percent to 3,570 yen.
Olympus Corp. (7733.T) advanced 3.8 percent to 4,360 yen after the precision equipment maker forecast an 8.4 percent rise in operating profit to 107 billion yen ($892 million) for the year that started last month, in what would be its third straight year of record profit.
