Nikkei edges down in directionless trade ahead of national holiday

Japanese stocks were flat in thin, directionless trade on Tuesday as many investors sat on the sidelines ahead of the market's closure for a national holiday on Wednesday. The Nikkei share average edged down by 0.2 percent to 18,886.70. The Topix subindex for air transport gained 2.2 percent as crude prices remained near 2009 lows ahead of the holiday travel rush.
Japan Airlines Co Ltd rose 2.7 percent while competitor ANA Holdings Inc added 1.7 percent. The construction sector gained 1.3 percent as Sekisui House Ltd climbed 2.2 percent after Barclays raised its target price to 2,500 yen from 2,100 yen. Taisei Corp added to the gains, rising 1.6 percent after a design submitted by a Taisei-led consortium was chosen as the New National Stadium and centerpiece of the 2020 Tokyo Olympics. The broader Topix edged up 0.2 percent to 1,533.60 and the JPX-Nikkei Index 400 rose 0.2 percent to 13,820.28. During midday trade, traders said that investors remain on the sidelines after digesting the Bank of Japan's decision last week to announce only minor adjustments to its massive stimulus programme.
"The mood will likely depend on moving oil prices for now," said Yutaka Miura, a senior technical analyst at Mizuho Securities. US crude futures jumped away from 2009 lows in early Asian trading, but the market remained jittery about oil prices, he said. "Although trading will likely stay directionless throughout the day, if oil prices gain in Asian trade and US futures rise, Japanese stocks may be bought in the afternoon," Miura said.
Meanwhile, he said, investors would to individual companies' trading cues. Toshiba Corp stumbled 7 percent after saying on Monday it would book a record net loss this year and cut around 5 percent of its workforce. Mitsumi Electric Co surged more than 15 percent after Minebea Co said on Monday it planned to acquire Mitsumi in a bid to expand its electronics parts business. McDonald's Holdings Company fell 4.2 percent after the Nikkei business daily reported that US-based McDonald's Corp is reaching out to investors about selling a part of the fast-food company's stake in its Japanese arm for about 100 billion yen. McDonald's, which owns nearly half of the Japanese unit, has asked potential buyers to respond by mid-January, Nikkei said. Exporters were mixed, with Toyota Motor Corp rising 1.3 percent while Honda Motor Co flat and Panasonic Corp dropped 0.9 percent.