Nikkei edges down in cautious trade before results
(Updates to midmorning)
TOKYO, April 23 (Reuters) - Japan's Nikkei average edged down 0.2 percent on Wednesday as a stronger yen and overnight losses on Wall Street prompted investors to lock in recent gains ahead of Japanese corporate earning season.
"Fears over the credit crisis have receded after U.S. bank results. But the clouds have not cleared, with the dollar weak and oil prices surging," said Harushige Kobayashi, head of research at Maruwa Securities.
As of 0109 GMT, the Nikkei .N225 was down 29.92 points at 13,518.39, while the broader TOPIX index was flat at 1,310.74.
Digital camera maker Canon Inc (7751.T) fell 1.3 percent to 5,170 yen, among the top drags on the Nikkei. Toyota Motor Corp (7203.T) lost 1.5 percent to 5,150 yen.
On the other hand, Chugai Pharmaceutical Co Ltd (4519.T) surged 10.3 percent to 1,370 percent after it lifted this year's profit outlook, saying government drug price cuts were not as bad as feared, though it first-quarter income halved on weak Tamiflu sales. [IDn:T297056]
Oil and gas field developer Inpex Holdings Inc (1605.T) rose 1.6 percent to 1.24 million yen after U.S. crude oil futures jumped to a record near $120 as a weak dollar encouraged buying of commodities and as developments in Nigeria and the U.K. stoked supply concerns. [ID:nN22456547]
Inpex and trading house Itochu Corp (8001.T) said on Tuesday that a BP-led (BP.L) consortium including the two companies had started oil production at the Gunashli field in the Caspian Sea in Azerbaijan. [ID:nT311994] Itochu rose 1.1 percent to 1,135 yen.
Japan's largest brokerage, Nomura Holdings Inc (8604.T), extended its losses, falling 1.8 percent to 1,609 yen. The firm said on Tuesday that it had fired an employee at the centre of an insider trading ring and warned the fallout could harm its business. [ID:nT306300]
The insider trading scandal, the broker's second in five years, comes on top of falling profits and $1.4 billion in subprime losses, after which the firm replaced its CEO.
Maruwa's Kobayashi said the scandal was likely to affect Nomura's business as some of its client companies are expected to suspend deals with the firm. (Reporting by Taiga Uranaka; Editing by Hugh Lawson)
