June 26, 2017 / 2:52 AM / a year ago

Nikkei edges up as dollar-yen steady; Takata files for bankruptcy protection

* Toshiba tumbles after demoted to 2nd section

* Mining shares outperform

By Ayai Tomisawa

TOKYO, June 26 (Reuters) - Japan’s Nikkei share average ticked up on Monday morning as the dollar-yen held steady, while investors’ attention fell squarely on Takata Corp after it filed for bankruptcy protection.

The embattled air bag inflator maker said it would seek $1.588 billion in financial aid from U.S.-based auto parts supplier Key Safety Systems (KSS).

The Tokyo Stock Exchange said shares of Takata would be delisted on July 27 after it filed for bankruptcy protection. The stock will be suspended for all of Monday, after closing at 160 yen on Friday.

“Takata’s bankruptcy is bad news, but since the market has long known that the company was in trouble, its impact to overall investor sentiment is limited,” said Yutaka Miura, a senior technical analyst at Mizuho Securities.

The Nikkei rose 0.1 percent to 10,161.02 in midmorning trade.

Analysts expect the stock market to be supported by hopes of solid earnings.

“We stand by our view that the 20,000 level is a key support level with positive focus to increase on stock specific earnings, corporate actions and ROE increases,” said Gavin Parry, managing director at Parry International Trading Limited.

Elsewhere, Toshiba Corp tumbled as much as 6.9 percent after the Tokyo Stock Exchange decided to downgrade the stock to its second section from August.

Mining shares staged a rally after oil prices rose early on Monday. Inpex Corp climbed 1.7 percent and Japan Petroleum Exploration rose 1.2 percent.

Financial stocks lost ground, with banks and insurers falling 0.5 percent and 0.9 percent, respectively. Sumitomo Mitsui Financial Group dropped 1.0 percent, Dai-ichi Life Holdings shed 1.0 percent and T&D Holdings declined 0.9 percent.

The broader Topix was up 0.1 percent to 1,612.60. (Editing by Shri Navaratnam)

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