Tokyo stocks slip as bank shares continue slide

TOKYO, Aug 14 (Reuters) The Nikkei average slipped 0.1 percent on Tuesday with banks shares such as Mizuho Financial Group Inc. continuing a slide amid lingering credit concerns, while shippers and other recent gainer recouped their previous losses.

Shares of infrastructure-related firms Asiawide such as Kawasaki Heavy Industries Ltd. and Komatsu Ltd. rose after a newspaper report that India is planning a range of such projects.

''Bargain hunting appears to be the main force in the market, and that is why the market lacks a punch,'' said Zenshiro Mizuno, a senior managing director at Marusan Securities.

''Still, the market is likely to move up little by little as a sign that it has bottomed out for now, although it will not be the start of an upward trend yet as investors are still concerned about subprime fallout.'' Kazuhiro Takahashi, general manager of the equity marketing department at Daiwa Securities SMBC, said central bank moves to inject sizable amounts of overnight funds to alleviate the money market squeeze were positive and will likely improve market sentiment, although there were still concerns.

Central banks around the world have been providing funds amid growing worries over bank and fund losses related to problems in the U.S. subprime mortgage sector.

The benchmark Nikkei average was down 23.83 points at 16,776.22 as of 0102 GMT.

The broader TOPIX index shed 0.2 percent to 1,630.08.

Shares of Mizuho Financial dropped 1 percent to 698,000 yen, while Mitsubishi UFJ Financial Group Inc. lost 1.7 percent to 1.14 million yen and Sumitomo Mitsui Financial Group Inc.

declined 1.3 percent to 975,000 yen.

Kawasaki Heavy rose 3 percent to 519 yen, and Komatsu climbed 2.3 percent to 3,530 yen.

Reuters KK SBA VP0755