* Nikkei has risen 2.2 pct for the week
* Murata, JDI, Minebea tank on Apple’s concern
* Nissan soars after agreeing to buy 34 stake in Mitsubishi Motors
By Ayai Tomisawa
TOKYO, May 13 (Reuters) - Japanese stocks slumped in choppy trade on Friday morning, the first drop in five days as Apple’s suppliers underperformed on persistent worries about slowing demand for iPhones.
The Nikkei share average shed 1.2 percent to 16,451.81 in midmorning trade after rising as high as 16,804.17 in opening deals. It is poised to snap a four-day winning streak partly weighed by profit-taking, although the benchmark index has risen 2.2 percent for the week.
The Japanese market has been on a steady recovery path following an 8.6 percent tumble in the six-day period through last Friday after the Bank Of Japan decided to hold off on expanding monetary stimulus. A sharp rise in the yen that accompanied the BOJ’s decision also stoked concerns about Japan Inc’s earnings.
Analysts said that pessimism over a stronger yen may persist for a while, but more investors are gradually chasing the market higher.
The yen has pulled back in the past few days after explicit intervention warnings from Tokyo.
“Although investors remain cautious, they think Japanese stocks will eventually catch up with the strength in overseas stocks such as U.S. shares,” said Isao Kubo, equity strategist at Nissay Asset Management.
Market players said the Nikkei benchmark index is expected to trade in a wide range next week, with the possibility of recovering the 17,000-line for the first time in more than two weeks.
Apple’s component makers dived, with Murata Manufacturing Co dropping 3.8 percent, Japan Display Inc tumbling 5.6 percent and Minebea Co shedding 4.0 percent. Apple Inc fell 2.35 percent overnight to the lowest since June 2014 as worries festered about slowing demand for iPhones.
Oil shares also took a hit after oil prices dipped as a stronger dollar weighed and Russia warned that a global crude supply overhang could last into next year.
Inpex Corp shed 2.9 percent and Japan Petroleum Exploration Co declined 3.8 percent
Bucking the broader market, Nissan Motor Co soared 5.1 percent after the automaker agreed to buy a 34 percent stake in Mitsubishi Motors Corp.
Mitsubishi Motors fell 2.3 percent after soaring 16 percent on Thursday.
The broader Topix dropped 0.8 percent to 1,326.48 and the JPX-Nikkei Index 400 declined 0.8 percent to 11,988.83.
Editing by Shri Navaratnam