(Adds comment, stocks, details)
By Aiko Hayashi
TOKYO, April 18 (Reuters) - Japan's Nikkei stock average
edged down 0.2 percent on Friday after a three-day winning
streak, as investors moved to the sidelines ahead of earnings
results from Citigroup <C.N>.
Exporters such as Canon Inc <7751.T> rose on a softer yen and
receding pessimism about U.S. corporate profits after Google Inc
<GOOG.O> reported solid earnings, while defensive issues such as
drugmakers lost favour amid improving investor confidence.
"Investors in Tokyo actually don't want the market to gain
too much today because after Citi's earnings the market could
rally on short-covering," said Mitsushige Akino, chief fund
manager at Ichiyoshi Investment Management Co Ltd.
"While Citi is expected to report bad earnings, it probably
has plans to boost its capital, and potential rescue plans might
have been discussed at the Group of Seven meeting."
Analysts on average expect Citigroup, the largest U.S. bank,
to post a quarterly loss close to $5 billion.
The benchmark Nikkei average <> fell 23.09 points to end
the morning session at 13,375.21. It gained 3.7 percent over the
past three days.
The broader TOPIX index <> shed 0.2 percent or 3.04
points to 1,290.28.
The dollar was steady from late U.S. trading on Thursday at
102.53 yen <JPY=>, hovering near a one-month high of 102.95 yen
hit in early April.
Investors have been wary of a stronger yen as it decreases
the value of Japanese firms' overseas sales when translated back
into the currency.
Trade was thin on the Tokyo exchange's first section, with
664 million shares changing hands, compared with last week's
morning average of 840 million.
Declining stocks outnumbered advancing ones by nearly 2 to 1.
DRUGS DOWN, EXPORTERS UP
Katsuhiko Kodama, senior strategist at Toyo Securities, said
defensive shares such as drugmakers were sold while exporters
were bought on improving sentiment in the overall market, with
automakers gaining on a softer yen and after their expected poor
earnings had been priced in.
Astellas Pharma Inc <4503.T> shed 3.8 percent to 4,040 yen
and Daiichi Sankyo Co Ltd <4568.T> gave up 3.2 percent to 2,880
yen.
Takeda Pharmaceutical Co Ltd <4502.T> fell 1 percent to 5,130
yen, dented after CLSA lowered its rating on Takeda to
"outperform" from "buy" and cut the target price to 5,720 yen
from 6,420 yen.
The brokerage said a series of alliances during the past two
months would have a negative impact on Takeda's profits during
the next five years.
Exporters rose, with Canon adding 2 percent to 5,050 yen and
chip gear maker Tokyo Electron Ltd <8035.T> climbing 2.2 percent
to 6,620 yen.
Google posted stronger-than-expected quarterly earnings after
the closing bell on Thursday, with the Web search leader's shares
jumping 18 percent in after-hours trading. []
Toyota Motor Corp <7203.T>, Japan's biggest automaker, gained
1.6 percent to 5,090 yen and Honda Motor Co Ltd <7267.T> rose 1
percent to 3,050 yen.
The Nikkei business daily said on Thursday that Toyota would
likely post a 20 percent fall in operating profit for the
business year to March 2009 on slower U.S. sales and a stronger
yen. []
Bull-Dog Sauce Co Ltd <2804.T> jumped 6.3 percent to 255 yen
after the Nikkei said on Friday that U.S. investment fund Steel
Partners had sold its entire stake in the company by the end of
March, ending a corporate battle that led to a top court ruling
that endorsed Bull-Dog's anti-takeover moves.
(Editing by Brent Kininmont)
