(Adds stocks, details)
By Elaine Lies
TOKYO, May 20 (Reuters) - Japan's Nikkei stock average
slipped 0.3 percent on Tuesday, dragged lower as investors locked
in profits on property firms but buoyed by trading houses such as
Mitsubishi Corp <8058.T>, which were at or near year-highs on
strong commodity prices.
Yahoo Japan <4689.T> tumbled 3.7 percent after Reuters
reported that, according to a person familiar with the talks,
Microsoft Corp <MSFT.O> has proposed to buy Yahoo Inc's <YHOO.O>
search business, including Yahoo's stake in Yahoo Japan.
[].
Fast Retailing Co Ltd <9983.T> and other retailers slipped as
investors switched funds to blue-chips amid growing concerns
about consumption in the face of oil prices near record highs.
Market players said shares were moving on individual or
sector-linked factors in the absence of upcoming big events or
indicators, with the market as a whole searching for direction.
"We're seeing a lot of the same trends as yesterday --
trading houses and steel firms are up on strong commodity prices,
while retailers are down since their general outlook is not so
good due to concerns about consumption with oil prices so high,"
said Hiroaki Osakabe, a fund manager at Chibagin Asset
Management.
Oil rose past $127 a barrel on Monday after OPEC's president
said the producer group would not increase output at its next
meeting in September. On Tuesday U.S. light crude for June
delivery <CLc1> was up 12 cents at $127.20.
Japan's largest trading house, Mitsubishi Corp <8085.T>, hit
its year's high and other trading firms were close behind, having
marked year highs on Monday before profit-taking kicked in.
"I think a lot of people out there want to make a try for
14,500 yen, but without some sort of positive factor such as the
dollar rising to 105 yen, that's going to be pretty hard for
now," said Noritsugu Hirakawa, a strategist at Okasan Securities.
The benchmark Nikkei <> shed 45.49 points to 14,224.12,
while the broader Topix <> was down 0.1 percent at 1,402.60.
YAHOO JAPAN SLIDES
Yahoo Japan tumbled after the Reuters report, in which the
source said that as part of the deal, Yahoo Inc would sell its
Asian assets including significant minority stakes in Yahoo Japan
and China's Alibaba Group, while Microsoft would buy a chunk of
what remains of the company.
Yahoo Japan declined to comment on the report, and the
company's stock fell to 43,450 yen, becoming the biggest drag on
the Nikkei by percentage.
By sector, that position was held by property firms, which
slid after Credit Suisse downgraded the sector on slowing bank
lending.
Tokyu Land Corp <8815.T>, a major real estate developer, fell
4.4 percent to 792 yen, while Sumitomo Realty & Development Co
Ltd <8830.T> fell 3.3 percent to 2,660 yen and Mitsubishi Estate
Co Ltd <8802.T> lost 3.3 percent to 2,800 yen.
Fast Retailing, which operates the "Uniqlo" chain of casual
clothing stores, was down 2.5 percent at 9,250 yen while Seven &
I Holdings Co Ltd <3382.T>, which runs the Seven Eleven Japan
convenience store chain, slid 3.4 percent to 3,130 yen.
Trade picked up slightly, with some 1.1 billion shares
changing hands on the Tokyo exchange's first section compared
with last week's morning average of 960 million.
Decliners beat advancers by 800 to 778.
(Editing by Brent Kininmont)
