Nikkei edges up on KDDI, but recent gainers fall

TOKYO, Mar 14 (Reuters) The Nikkei share average edged up 0.08 percent on Tuesday as KDDI Corp. advanced on a report it may increase its annual dividend, outweighing losses by Advantest Corp. and other recent gainers.

Concern that a three-day rally may have pushed share prices up too quickly was helping to limit the Nikkei's advance, said Katsuhiko Kodama, senior strategist at Toyo Securities.

''After rising more than 700 points in just three days, I think it can't be helped if we see some investors locking in some gains,'' he said.

''At this point there are concerns about the speed of the recent rise.'' The Nikkei was up 13.01 points, at 16,374.52 as of 0047 GMT.

The broader TOPIX index was up 0.13 percent at 1,676.77.

Shares in KDDI added 2.1 percent to 594,000 yen. The Nihon Keizai business daily reported on Tuesday that Japan's second-largest telecoms operator is considering raising its annual dividend payment for 2005/06 by 600 yen to 7,500 yen on strong demand for its mobile service.

A company spokesman could not immediately confirm the report.

Advantest, the world's largest maker of chip-testing equipment, fell 1.3 percent to 13,730 yen, becoming the biggest drag on the index. Shares in the company had risen more than 8 percent over the previous three sessions.

Shares in Fuji Heavy Industries Ltd. climbed 4.2 percent to 701 yen. The maker of Subaru cars, together with Toyota Motor Corp., announced a deal on Monday to build Toyota Camry sedans at one of Fuji's underused U.S. plants.

The companies called the move a first step in developing a tie-up between the two auto makers.

Shares in Toyota rose 0.6 percent to 6,380 yen.

Reuters SK VP0756