* Nikkei consolidating above 25-day moving average -analyst
* Mitsubishi Motors falls after rules out Peugeot capital tie
* Elpida up, to buy Spansion flash memory assets
By Elaines Lies
TOKYO, March 4 (Reuters) - Japan's Nikkei stock average edged
down 0.1 percent in choppy trade on Thursday, though slides were
limited by encouraging U.S. economic data and hopes for progress
on Greece's massive debt woes.
Elpida Memory <6665.T> gained after the chipmaker said it was
in talks to buy the flash memory assets of U.S. company Spansion
<SPSNQ.PK>, but Mitsubishi Motors <7211.T> fell nearly 7 percent
after it and France's PSA Peugeot Citroen <PEUP.PA> failed to
agree on terms for a capital alliance. []
[]
The U.S. Institute for Supply Management's gauge of service
sector activity and the ADP's report on private employment
pointed to a strengthening economy and stabilising labour market
[]
Additional encouragement came from the Federal Reserve, which
said economic activity strengthened modestly across most of the
12 Fed districts during February, according to its Beige Book
summary. []
Tokyo analysts said that while this data was promising,
investors would remain skittish and look to take profits ahead of
Friday's key U.S. jobs data.
"The Nikkei has risen for the past 4 trading days and market
energy is increasing, but while the encouraging U.S. data will
keep the downside supported investors are likely to be quick to
lock in profits ahead of the Friday jobs figures," said Hiroichi
Nishi, general manager at the equity division of Nikko Cordial
Securities.
The benchmark Nikkei <> edged down 6.03 points to
10,256.19 after seesawing between positive and negative, while
the broader Topix <> lost 0.1 percent to 905.08.
Some analysts said the benchmark was likely to be in a
consolidation phase after closing above its 25-day moving
average, which currently comes in just under 10,200, for two days
in a row.
Additional support for the market came after Greece's cabinet
approved sweeping budget cuts, the country's third savings
package in as many months, as it tries to secure European help to
tackle its massive debt burden.
The European Union praised the plan and said the country
could count on European solidarity, but German Chancellor Angela
Merkel, whose backing for any European safety net for Greece will
be vital, stopped short of any commitment to financial support.
[]
But some analysts were sceptical, noting that the problem
remains far from settled.
"The downside may be a bit more solid on relief that there
appears to be progress, but this in itself isn't likely to have a
huge direct influence on Japanese stocks," said Koichi Ogawa,
chief portfolio manager at Daiwa SB Investments.
But the plan did help the euro <EUR=> gain some firmness,
which will help support stocks as well, he added.
The euro was flat against the yen at 121.20 yen <EURJPY=>,
while the dollar rose 0.1 percent against the Japanese currency,
to 88.49 yen <JPY=>.
ELPIDA, MITSUBISHI MOTORS
Elpida spokesman Hiroshi Tsuboi said the company is in talks
to acquire Spansion's flash memory technologies as well as 40-50
engineers in Italy.
He declined to comment how much the company would spend on
the purchase, but the Nikkei business daily reported earlier that
Elpida would pay 3-5 billion yen ($34-57 million).
Elpida rose 2.7 percent to 1,662 yen on news of the move,
which Ogawa at Daiwa SB Investments said was likely to be a
positive that would enable the company expand into new areas.
But Mitsubishi Motors fell to 6.8 percent to 123 yen,
although the company and Peugeot said they would continue talking
about expanding business ties.
Shipping firms powered higher after the Baltic Exchange's
main freight index <.BADI>, which tracks rates to ship dry
commodities, rose 4.3 percent to over a one-month high on
Wednesday as better coal and iron ore cargo demand lifting
sentiment. []
Nippon Yusen <9101.T> rose 3.1 percent to 335 yen, Mitsui
O.S.K. Lines <9104.T> gained 1.9 percent to 597 yen and Kawasaki
Kisen K.K. <9107.T> rose 1.9 percent to 328 yen.
(Reporting by Elaine Lies; Editing by Joseph Radford)
