* KDDI, Astellas Pharma rise
* Chiyoda Corp falls on Australia LNG project fears
TOKYO, June 25 (Reuters) – Japan’s Nikkei share average
dipped on Monday, with defensive stocks helping to offset global
jitters as euro zone policymakers appeared no closer to
resolving the region’s debt crisis heading into another European
summit this week.
The Nikkei eased 0.2 percent to 8,785.10, while the
broader Topix was flat at 750.85.
Telecommunications firm KDDI was the top weighted
gainer, up 1.4 percent, while peer NTT DoCoMo rose 1
percent.
Astellas Pharma Inc gained 1.4 percent after the
drugmaker received approval for additional use of its Symbicort
Trubuhaler drug treatment for adult bronchial asthma in Japan.
“On the European side, you have concerns about the summit.
It’s not if they have not had the repeated chances to get
together to talk about this,” said Nicholas Smith, Japan
strategist at CLSA.
“On the Japanese side, you have got the likely vote on the
consumption tax. It might be tense and certainly low volume is
suggesting there isn’t much commitment from investors until they
get these two issues resolved.”
Domestic media reported the ruling Democrats and the
opposition have agreed in principle to vote on Tuesday on a bill
aimed at doubling the 5 percent sales tax by 2015.
“The consumption tax talk over the weekend obviously is
putting some pressure on the retail space today,” a trader said.
Isetan Mitsukoshi Holdings Ltd, J.Front Retailing
Co Ltd and Bic Camera Inc slipped between 0.5
and 1.7 percent.
Trading volume on the Topix after the morning session was
light, at 35 percent of its full daily average for the pasta 90
days.
The benchmark Nikkei has rallied 6.6 percent since hitting a
six-month low on June 4, but is still down nearly 13 percent on
the quarter, hurt by concerns about the deepening euro zone
sovereign debt crisis and slowing global growth.
Weighing on the market on Monday was weakness in sectors
sensitive to economic conditions-, with mining down
3.1 percent and shippers off 1.3 percent.
Plant engineer Chiyoda Corp fell 3.1 percent to a
near three-week low, extending Friday’s 3.3 percent drop on
concerns that development of the Browse liquefied natural gas
project in Australia would be delayed.
Chiyoda is part of a joint venture that has been awarded for
a front-end engineering and design contract for the onshore
component of the project.
