* Nikkei trims losses in afternoon on futures buying
* Tokyo Elec shares dive on report of possible
nationalisation
* Mizuho Financial Group tumbles on FSA inspection news
By Ayai Tomisawa and Antoni Slodkowski
TOKYO, March 29 (Reuters) - The Nikkei share average fell
slightly on Tuesday, bouncing from steep early losses as
investors bought futures in the afternoon when other Asian
bourses rose, offsetting the impact of mounting worries about
Japan's crippled nuclear plant and the damage to corporate
earnings from this month's earthquake.
The benchmark had ended the morning session down 1.5 percent
before paring gains later in the day, but analysts said the
futures buying may not be strong enough to bolster the market in
the longer term.
"Futures buying can be a short-term catalyst to help the
market," said Hiroichi Nishi, general manager at Nikko Cordial
Securities.
"But this is not going to turn around the mood in the market
and it doesn't mean that buyers will return to the market."
Shares of Tokyo Electric Power tumbled 19 percent
to 566 yen after going untraded in a glut of sell orders after
the Yomiuri newspaper said the government would temporarily
nationalise it and help pay compensation for damage caused by
its crippled Fukushima nuclear plant.
National Strategy Minister Koichiro Gemba said later that a
discussion about bailing out Tokyo Electric was possible.
[]
"The situation in Fukushima has a big, underlying impact on
the market, with worries over the plant likely impacting Wall
Street yesterday," said Kazuhiro Takahashi, general manager at
Daiwa Securities Capital Markets.
The discovery of plutonium in soil at the Fukushima complex
heightened alarm on Tuesday over Japan's protracted battle to
contain the world's worst nuclear crisis in 25
years.[]
"Investors are spooked by the news report (about Tokyo
Electric)," said Hajime Nakajima, a trader at Cosmo Securities.
"As long as there are concerns that Tokyo Electric may be
nationalised, investors don't want to hold the stock. Passive
funds are selling too," Nakajima said, adding that investors
were reminded of panic selling of Japan Airlines shares last
year when it decided to decrease its capital.
The benchmark Nikkei fell 0.2 percent, or 19.45
points, to 9,459.08 after hitting an intraday low of 9,317.38 in
morning trade.
DIVIDEND PAYMENTS
Market players estimated that 83 points of the Nikkei's
early fall was due to selling pressure from the passage of the
date for investors to receive dividends for the current business
year ending on March 31.
The broader Topix fell 0.9 percent to
850.21.
Analysts pegged an immediate support level for the Nikkei
around 9,300.
Japanese shares have lost about 7.8 percent since the March
11 earthquake and tsunami, and a subsequent nuclear safety
crisis, triggered the biggest two-day rout in the market since
1987. In contrast, the MSCI index of Asian shares outside Japan
has gained 3.2 percent.
The head of the Tokyo Stock Exchange said on Monday that
some Japanese companies, mainly manufacturers, would likely be
late in announcing full-year earnings for this business year
because of the disaster, which in turn would delay the payment
of dividends.[]
Mizuho Financial Group plunged 6.0 percent to 140
yen in heavy trade after the Financial Services Agency said on
Monday it would inspect Mizuho Bank over its recent computer
system troubles.
Mizuho was the fourth most actively traded share on the
Tokyo exchange's first section by turnover .
Nippon Chemi-Con Corp soared 13 percent to 391 yen
after Macquarie Securities raised its rating in the stock to
"outperform" from "neutral". The brokerage said that, although
the company's earnings may be hit by production delays due to
the earthquake, they may improve from the July-September quarter
as the positive outlook for the aluminium capacitor industry
remains intact.
(Editing by Edmund Klamann)
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