Nikkei slips as weaker oil dents sentiment, financials fall after rally
* Nikkei down 0.7 pct, financials fall after 2 days of big gains
* Crude oil's drop to 3-month lows dents investor risk appetite
By Shinichi Saoshiro
TOKYO, Aug 2 (Reuters) - Japan's Nikkei share average slipped on Tuesday with a slide in crude oil prices denting investor risk sentiment, while financials fell after two days of large gains.
The Nikkei was down 0.7 percent at 16,527.17.
The market has been weighed by the yen's recent appreciation and a drop by crude oil prices to three-month lows adding to the sombre mood.
"The U.S. ISM data out overnight was not all that encouraging, and lower oil is prompting a bit of risk aversion," said Chihiro Ohta, general manager of investment research and investor services at SMBC Nikko Securities.
The Institute of Supply Management (ISM) data released on Monday showed the U.S. economy's factory sector expanded at a slower pace in July.
"The Nikkei had not been able to make further advances after rising significantly, and we are also starting to see a retracement of some of those gains," Ohta said. Continuación...