Nikkei ends flat, energy down but Trend Micro up

(Adds stocks, comments)

By Eriko Amaha

TOKYO, Aug 7 (Reuters) - The Nikkei average ended flat on Tuesday as software firm Trend Micro Inc. (4704.T) surged on a better forecast, but a drop in crude oil prices hit trading house Mitsubishi Corp. (8058.T) and other energy-related stocks.

Mizuho Financial Group Inc. (8411.T) fell 2.1 percent to 687,000 yen, extending its losing streak into a ninth session, and other bank shares slipped amid lingering concern about a global credit squeeze, contributing to a drop in the TOPIX index .

The Nikkei got off to a strong start in the morning but failed to keep its gains due to a dearth of active buying by the foreign investors who play a major role in the Tokyo market.

"Foreign investors account for about 60 percent of the Tokyo market and even if the remaining 40 percent of domestic investors try to bolster the market there's a limit," said Masayoshi Okamoto, head of dealing at Jujiya Securities.

The Nikkei .N225 inched up 0.04 percent or 7.31 points at 16,921.77. The broader TOPIX shed 0.47 percent to 1,660.16.

Trade was mixed as investors focused on individual stocks with solid profit outlooks or positive news flow.

"There are companies which are making good progress on their earnings, although their share performances have not led to the overall market gains," Okamoto of Jujiya Securities said. "You just have to check each firm's financial statement."

Trade volume was moderate with 2 billion shares changing hands. Decliners outnumbered advancers by a ratio of more than two to one.

ENERGY STOCK SLUGGISH

U.S. crude oil futures plummeted more than 5 percent on Monday as signs of slowing economic growth raised worries that demand for petroleum products could be impaired, hitting Japanese energy stocks.

Mitsubishi Corp. fell 4.2 percent to 3,230 yen and fellow trading firm Mitsui & Co. (8031.T) declined 5.2 percent to 2,485 yen. Oil and gas developer INPEX Holdings Inc. (1605.T) plunged 8 percent to 1.04 million yen.

In the technology sector, Toshiba Corp. (6502.T) extended gains for a third day on rising NAND flash memory prices and ended 1.7 percent higher at 1,118 yen, while its rival Fujitsu Ltd (6702.T) fell 1.4 percent to 760 yen on its plan to issue convertible bonds.

Toyota Motor Corp. cruised higher for a third straight day, adding 1 percent to 7,250 yen on profit prospects.

Toyota's strong performance reflects keen appetite among investors who believe that economic fundmentals remain intact in the United States and Japan and that the credit concern will be temporary.