Nikkei edges up 0.4 percent

Japan's Nikkei average edged up 0.4 percent on Wednesday but gave up most of its gains as investors trimmed positions before upcoming Japanese and US economic data. Shares of big banks such as Mitsubishi UFJ Financial Group retreated, offsetting a rise in exporters such as Canon Inc.
Fujifilm Holdings Corp fell 1.5 percent after the digital camera and medical equipment maker said it would spend as much as 155 billion yen ($1.45 billion) to take control of drug maker Toyama Chemical Co Ltd. The Tokyo market rose sharply in the following gains on Wall Street after an offer of help to US bond insurers soothed some market worries about the credit crunch.
Yet investors switched to selling in the afternoon session to take a cautious stance before the events that will give clues how sharply the US economy is slowing and how much it is impacting Japan. "There are important data ahead, such as US retail sales later in the day," said Hiroaki Osakabe, fund manager at Chibagin Asset Management.
Japanese figures on the economy's fourth-quarter performance are also due out on Thursday. The benchmark Nikkei average rose 46.34 points to 13,068.30, while the broader TOPIX index dipped 0.1 percent to 1,285.35. Canon rose 3.2 percent to 4,530 yen, one of the top contributors to the Nikkei, while Mitsubishi UFJ lost 0.4 percent to 939 yen.
Fujifilm shed 1.5 percent to 3,890 yen. Toyama Chemical was up by daily limit, or 16 percent, to 731 yen. Fujifilm is bidding for Toyama Chemical to grow in the pharmaceuticals market.
Aiful Corp pared gains and plunged 11.8 percent to 1,735 yen after the consumer finance firm said that it planned to raise $1.1 billion through a new share and convertible bond issue to shore up its operating funds. Trade was light, with 2.08 billion shares changing hands compared with last week's average of 2.26 billion.
Declining shares beat advancing shares by 853 to 753. Wall Street gained on Tuesday after billionaire investor Warren Buffett offered to reinsure $800 billion in municipal debts guaranteed by the top three US bond insurers, soothing worries about fallout from the credit crisis.
But Japanese market players were sceptical about how much the offer will help. CNBC reported that one of the three, Ambac Financial Group Inc, had already rejected the offer. "It's just a message. No one will take the offer," said Hiroshi Arano, advisor to Mizuho Asset Management. Some shares also took a hit after reporting weak quarterly earnings, adding to the market's downbeat mood.
Mitsuba Corp plunged by its daily limit of 100 yen, or 18.8 percent, to 432 yen after the maker of electric auto parts slashed its full-year outlook on weak sales at home and in the United States as well as steep raw material costs.
Daiwa House Industry Co Ltd shed 7.8 percent to 1,117 yen, adding to a 14 percent fall in the previous session after Credit Suisse cut its rating to "neutral" from "outperform" following a sharp outlook dow Dainippon Screen Manufacturing Co Ltd tumbled 9.6 percent to 441 yen after the maker of microchips and flat panel display equipment lowered its annual outlook on a weaker investment appetite among chipmakers.