Nikkei declines on Sony, Softbank gains

TOKYO, Jan 10 (Reuters) The Nikkei share average declined 1.3 percent on Wednesday as Sony Corp. trimmed gains from its rally in the previous session while energy firms such as INPEX Holdings Inc. were hit by lower crude prices.

Shares of Softbank Corp. rose as investors bet it would be the most likely of Japan's three major mobile phone operators to release Apple Computer Inc.'s new iPhone in Japan.

''Shares of Sony saw a big advance yesterday so it is easy for investors to take profits there,'' said Yoku Ihara, a manager in the investment information department at Retela Crea Securities.

Softbank climbed 2.6 percent to 2,540 yen on speculation it may sell Apple's new iPhone, which can play music and video allows for Internet surfing.

''Softbank has had the closest relationship with Apple (of Japan's mobile operators). We've heard talk in the past of them working together, so investors are betting that will continue,'' Retela's Ihara said.

Softbank already packages Apple's iPod nano digital music player as a promotion with one of its phones.

The Nikkei was down 225.93 points at 17,011.84 as of 0102 GMT.

The broader TOPIX index was down 1.11 percent at 1,673.40.

Sony fell 2.3 percent to 5,420 yen after booking its biggest one-day percentage gain in a year on Tuesday, boosted by a brokerage upgrade.

Shares of Shinko Securities Co. Ltd. jumped 11.4 percent to 519 yen.

Shinko and Mizuho Securities Co., both affiliated with Mizuho Financial Group Inc., have agreed to merge around January 2008, sources close to the matter said on Wednesday.

Oil and gas developer INPEX Holdings fell 1.4 percent to 915,000 yen after U.S. crude oil futures hit an 18-month low on Tuesday.

Reuters DKS VP0650