Nikkei edges down, trading firms and banks lower

Tokyo, Aug 24: The Nikkei average fell 0.2 percent on Friday after posting a one-week closing high in the previous session, with recent gainers such as Marubeni and financial firms under pressure after a lacklustre day on Wall Street, where shares faltered on a shaky economic outlook.

Shares in Hino Motors Ltd and Isuzu Motors Ltd rose after a report in the Nikkei business daily that they would jointly develop diesel engines, with Hino up 2.8 percent at 778 yen and Isuzu up 2.71 percent at 570 yen as of 1002 GMT.

''Trading firms and exporters -- stocks that climbed on Thursday -- are taking a short break from rises, but with the yen trading around the 116 yen level to the dollar the downside is likely to be supported,'' said Yumi Nishimura, a manager in the investment advisory section of Daiwa Securities SMBC Co Ltd.

''There aren't a lot of immediate factors to watch today and the approach of the weekend is likely to keep trade light. It may be hard to see a clear direction,'' she said.

The Nikkei was down by a bare 0.2 percent at 16,281.81 points, while the broader TOPIX index edged slightly lower by 0.35 percent at 1,586.21 points.

The dollar was steady from Thursday's late U.S. trade at 116.20 yen down from the previous day's session high of 117.15 yen, on persistent fears that losses linked to the U.S. subprime mortgage problem could cause more market turmoil.

Marubeni was down 1.68 percent at 935 yen, with other trading houses also slipping. Mitsubishi Corp fell 1.29 percent to 3,070 yen.

Hino and Isuzu, both partly owned by Toyota Motor Corp., also plan to discuss possible joint operations in other areas such as vehicle assembly and overseas business, which may eventually lead to integration, the Nikkei said. Company officials said nothing had been decided.

Financial firms edged lower, with Resona Holdings down 1.65 percent at 238,000 yen and Sumitomo Mitsui Financial Group losing 1 percent to 924,000 yen.

Reuters>