* Nikkei, Topix both drop 0.3 percent
* Foreigners net buyers of Japan stocks 13th straight week
* USD/JPY holding above 81 is key to further rises-analyst
* Immediate resistance at 10,470-analyst
By Ayai Tomisawa and Antoni Slodkowski
TOKYO, Feb 3 (Reuters) - Japan's Nikkei average edged lower
on Thursday, after posting its biggest jump in two months the day
before, as worries over an escalation of violence in Egypt nudged
investors towards safer assets, offsetting strong U.S. jobs data.
The Nikkei lacked clear direction after a lukewarm
performance by Wall Street despite a report showing U.S.
private-sector employers added more jobs than expected in
January, amid signs the market is overbought while cautiously
eyeing developments in Egypt. [].
Supporters of President Hosni Mubarak opened fire on
protesters on the streets of Cairo, wounding seven, as a spike in
violence helped to send oil prices above $100 a barrel.
[]
"Traders are also reluctant to make big bets with
heavyweights from industry, finance and electronics reporting
today," said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ
Morgan Stanley Securities.
This week marks the peak of Japan's corporate results
reporting season for the October-December quarter, with such
economic bellwethers as Sony Corp <6758.T>, Japan's biggest bank
by assets Mitsubishi UFJ Financial Group <8306.T>, Sharp Corp
<6753.T> and Hitachi Ltd <6501.T> reporting on Thursday. []
Shares of Panasonic Corp <6752.T> fell 3.1 percent to 1,091
yen in heavy trade after it posted a worse-than-expected 5.6
percent fall in quarterly profit, as tough price competition and
a stronger yen offset help from Japan's incentive scheme for
eco-friendly appliances.[]
Panasonic's major rival, Sony, is expected to post a 15
percent fall in October-December profit on Thursday, also hurt by
a stronger yen and tough price competition in the flat TV market.
The benchmark Nikkei <> was down 0.3 percent or 33.74
points at 10,423.62.
The broader Topix <> also shed 0.3 percent to 926.78.
FOREIGNERS BUY
Foreign investors bought a net 54.2 billion yen ($663
million) of Japanese stocks last week, government data showed,
marking the 13th consecutive week of buying. []
"The market has become immune to the stronger yen," said Yumi
Nishimura, a senior market analyst at Daiwa Securities Capital
Markets, though she added the market could be dented if the
dollar trades below 81 yen.
"Most exporters are probably not assuming that the dollar
will trade below 81 yen and stay below that level."
The dollar <JPY=> was at 81.64 yen at 0457 GMT.
U.S. private employers added more jobs than expected in
January, the 12th consecutive month that companies took on staff,
adding to hopes that the U.S. labour market is slowly recovering
and bolstering hopes for the more comprehensive U.S. jobs report
on Friday.
"Market players see the January options settlement level at
10,470 as an immediate resistance level and while they wait for
Friday's data, they are focusing on individual stocks of firms
with strong earnings or recent news," said Masayuki Otani, chief
market analyst at Securities Japan Inc.
Support for the Nikkei loomed around 10,422, the benchmark's
25-day moving average, a gauge often followed by Japanese
traders.
Bucking the negative trend on the Nikkei was Fast Retailing
<9983.T>, which jumped 4.0 percent to 12,740 yen and was the
biggest percentage gainer among the Nikkei 225 components, after
it said sales at its Japan stores rose for the first time in six
months in January, boosted by strong demand for winter clothing.
[]
Share prices of several trading houses rose a day after grain
and oil markets hit pre-financial crisis highs on supply fears
stoked by a harsh winter in major crop grower the United States
and potential instability across the oil-rich Middle East.
[]
Trading house Mitsui & Co <8031.T> rose 2.2 percent to 1,481
yen, while rival Sumitomo Corp <8053.T> gained 3.1 percent to
1,251 yen.
($1=81.72 Yen)
(Additional reporting by Tokyo newsroom; Editing by Joseph
Radford)
