Nikkei edges down as domestic demand-linked stocks drag in thin trade

lunes 15 de agosto de 2016 22:32 GYT

* Real estate stocks, food makers underperform

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By Ayai Tomisawa

TOKYO, Aug 16 (Reuters) - Japan's Nikkei share average edged down on Tuesday morning as weakness in domestic demand-driven stocks offset gains in cyclicals such as exporters in a relatively quiet holiday-thinned market.

The Nikkei dropped 0.2 percent to 16,837.98 in midmorning trade.

Traders said that with many investors away for Japan's 'bon' holidays, activity will likely be subdued again. On Monday, trading volume stood at only 1.24 billion shares on the broader market, the lowest level since April 2014.

The downside for the broader market, however, will likely be limited thanks to strong performances in overseas stocks, they said.

"Global investors seem to have turned 'risk on', but the yen has been on the strong side so people are cautious about investing in Japanese stocks for now," said Isao Kubo, an equity strategist at Nissay Asset Management, referring to rallies in Wall Street where three major U.S. stock indexes ended at all-time highs on Monday.

He expects the Nikkei to track a narrow range pending fresh catalysts.   Continuación...