Nikkei held below peak, Greece uncertainty keeps investors cautious

jueves 25 de junio de 2015 23:00 GYT

* Nikkei has gained 2.5 pct for the week
    * Market awaits nervously but expects resolution without
Grexit - trader
    * Japan's upbeat economic data gives little surprise -

    By Ayai Tomisawa
    TOKYO, June 26 (Reuters) - Japan's Nikkei share average
dropped on Friday as investors took profits in a market that hit
its highest levels since late 1996 earlier this week, opting for
caution while uncertainty hung over whether Greece would manage
to avoid defaulting.
    The Nikkei share average dropped 0.5 percent to
20,676.41 at the midmorning break, retreating from a 18-1/2-year
high of 20,952.71 hit earlier on Wednesday. For the week, it has
risen 2.5 percent.
    The market remains jittery as Greece failed again to reach
an agreement with its creditors on Thursday, but investors held
out hopes that talks over the weekend could succeed in avertng a
default, traders said. 
    "The market is reacting nervously, but not horribly. It's
kind of holding its breath expectantly," said Stefan Worrall,
director of equity at Credit Suisse.
    Meanwhile, data showed Japan's household spending rose more
than expected in May. It was the first annual increase in more
than a year, a signalled a ressumption in spending after last
year's sales tax hike made consumers cut back. 
    "It's good news but not too surprising as we've been seeing
strong department store sales and upbeat convenience store sales
lately," said Norihiro Fujito, senior investment strategist at
Mitsubishi UFJ Morgan Stanley Securities.
    Mitsubishi Motors Corp shed 1.0 percent after media
reports said that the automaker is recalling 460,000 cars
because the air bags can push sun visors into passengers and
cause injuries in a crash. 
    Exporters were lower, with Toyota Motor Corp 
falling 0.7 percent and Honda Motor Co shedding 0.9
    The broader Topix dropped 0.8 percent to 1,658.28
and the JPX-Nikkei Index 400 fell 0.8 percent to

 (Editing by Simon Cameron-Moore)