* Factory data offsets positive mood after S&P's record rise
* Sentiment remains bright for new fiscal year - analysts
* Panasonic falls on disappointment over no job cuts
By Ayai Tomisawa
TOKYO, March 29 Japan's Nikkei share average
eased on Friday morning as worse-than-expected factory output
data offset positive sentiment triggered by the U.S. S&P 500
hitting a record high, while trading was subdued on the last
business day of the fiscal year.
The Nikkei opened higher, but fell 0.1 percent to
12,325.34 in mid-morning trade.
Japan's industrial production unexpectedly fell 0.1 percent
in February from the previous month, government data showed,
compared with a median market forecast for a 2.6 percent rise.
The Topix dropped 0.3 percent to 1,033.41.
"The data is hurting sentiment, although the impact should
be limited and it may not last long," said Yutaka Miura, a
senior technical analyst at Mizuho Securities.
He added that despite poor factory data, production is seen
recovering in the future amid a pick-up in corporate investment.
Analysts said trading could be uneven while major foreign
markets were closed for Good Friday, but sentiment would
brighten next week with the April 1 start of the new year.
Worries about the European debt crisis receded as banks in
Cyprus reopened to relative calm on Thursday following the
country's controversial bailout that taxed large depositors.
In Wall Street, the S&P 500 set a record closing high.
"Investors' risk-off stance has receded," said Yoshiyuki
Kondo, an analyst at Daiwa Securities, but he added that
investors may not build large positions before the weekend and
on the last trading day.
Nikon Corp gained 1.6 percent and Nissan Motor Co
added 0.4 percent.
However, Panasonic Corp fell 3.4 percent after the
consumer electronics maker disappointed some investors by not
announcing job cuts in its medium-term business blueprint.
The Bank Of Japan's quarterly tankan survey of corporate
sentiment is due out on Monday, while the central bank's first
policy meeting under its new leadership will be held April 3-4.
BOJ Governor Haruhiko Kuroda said on Thursday that the
central bank would consider buying longer-dated Japanese
government bonds and other risk assets, and would continue
monetary easing until its 2 percent inflation target is