Nikkei turns down on pre-holiday caution

Tokyo, May 2: The Nikkei share average turned negative during morning trade on Wednesday, slipping 0.2 percent as investors turned cautious ahead of a long holiday weekend and sold some recent gainers such as Shin-Etsu Chemical Co. Ltd.

Trade was slow with many participants away for Japan's ''Golden Week'' spring holiday season. Japanese markets were closed on Monday for a national holiday and will also be closed on Thursday and Friday.

With trade volume thin, the market was also sensitive to futures trading, participants said.

''Trade is slow today, although that can't be helped,'' said Kenichi Hirano, operating officer at Tachibana Securities.

''However it also means the market can be swayed by (futures) selling.'' The Nikkei was down 30.31 points at 17,244.67 as of 0100 GMT.

The broad TOPIX index was down 0.28 percent at 1,688.54.

Silicon wafer maker Shin-Etsu was down 1.4 percent at 7,580 yen, having gained nearly 7 percent in the past month.

Shares of Ezaki Glico Co., a maker of candy and snacks, rose 1.8 percent to 1,480 yen after it said hedge fund Steel Partners has asked it to triple its planned dividend.

Daikin Industries Ltd., which makes air conditioners, rose 4.3 percent to 4,160 yen after the Nikkei business daily said its operating profit is likely to rise 25 percent this business year on strong sales of air conditioners in Europe and Asia.

Reuters>