Japanese shares dip on Greece concerns, nerves over Fed outlook
* Concerns over Greece, Fed policy outlook cap markets * Investors remain bullish on market on whole * Exporters shares lead losses * Honda down after earning restatement on additional recall costs By Hideyuki Sano TOKYO, June 15 (Reuters) - Japanese share prices dipped on Monday on worries over the deadlock between Greece and its creditors as well as a caution ahead of the U.S. Federal Reserve's monetary policy committee meeting. The Nikkei share average fell 0.2 percent to 20,373.24, though it recovered from the day's low of 20,205.10, erasing most of its losses as investors remained generally bullish on the market's outlook. Talks to end a deadlock on Greece's cash-for-reform rescue steps broke up in failure on Sunday, with European leaders venting their frustration as Athens stumbled closer towards a debt default that threatens its future in the euro. Many investors have long expected Athens to capitulate to creditors in the end, but lack of tangible progress in negotiations in recent days is making them nervous. Some others think there is a real chance of a default but they are not sure whether that will lead to Greece's exit from the euro or whether Athens will find some way to stay within the currency bloc. "I would say the market has already priced in a default. But if Greece is going to leave the euro that is another matter," said Tetsuro Ii, president of Commons Asset Management. In addition to the looming uncertainty over Greece, investors were also eager to see what Fed policy makers will telegraph to markets on Wednesday after its two-day policy meeting. The spectre of a U.S. rate hike down the road has capped stock prices around the globe, with the Nikkei average going through a correction after hitting a 15-year high on May 28. With the two main risk factors both originating offshore, traders were selling shares in exporters and other companies that have exposure to the global economy. Panasonic fell 1.0 percent while Fanuc dropped 1.0 percent. Honda Motor shed 1.1 percent after the carmaker said it would restate its financial results for the last business year to account for about $360 million in additional costs to pay for an expanded recall. Still, many investors remained positive on Japanese shares, which have been bolstered by hopes of a recovery in the Japanese economy and higher shareholder returns due to the government's push for corporate governance reforms. The broader Topix stood flat at 1,651.77 after having dropped 0.8 percent to 1,637.62 while the JPX-Nikkei Index 400 was also flat at 14,900.01, having fallen to 14,770.12 earlier. (Editing by Eric Meijer)
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