(Corrects paragraph 3 to say ... seven-week high ..., not ... seven-week low) * Exporters slip in wake of yen's recent rise vs dollar * Nikkei stuck just below 25-day moving average * Trading volume subdued * Renown surges on Aquascutum deal, CSK slides
By Masayuki Kitano
TOKYO, Sept 9 (Reuters) - Japan's Nikkei stock average edged 0.3 percent lower on Wednesday, with exporters such as Canon hurt by the yen's recent rise against the dollar, while energy-linked shares gained following a surge in oil prices.
Apparel maker Renown Inc soared nearly 15 percent on news that it was selling Aquascutum, a loss-making 158-year-old raincoat maker, to another British luxury fashion brand, Jaeger, for an undisclosed sum.
The yen's recent strength has been a major trading factor for the Nikkei this week, after the Japanese currency hit a seven-week high last week. The yen has been above levels expected by major manufacturers for the current financial year since late August.
"The yen is showing signs of strengthening again... If the dollar falls below 92 yen the impact may be big and such concerns are weighing on stocks," said Yutaka Miura, senior technical analyst for Mizuho Securities.
The dollar was steady against the yen at 92.36 yen, near a seven-week low of 91.94 yen hit last week.
The average exchange rate for the dollar versus the yen expected by major manufacturers for the year to March 2010 was 94.85 yen, with 94.77 yen expected for the second half, data from the Bank of Japan shows.
Market players fret that the yen's rise against the dollar could hurt the outlook for corporate earnings, as as stronger yen cuts into the value of exporters' overseas profits when they are repatriated.
The Nikkei dipped to 10,358.48, hovering below resistance at the 25-day moving average, which lies above 10,400.
Miura at Mizuho Securities said the Nikkei was likely to trade between 10,000 to 10,700 for the rest of the week. The broader Topix index slipped 0.3 percent to 943.86.
Trade fell off slightly on the Tokyo exchange's first section with some 913 million shares changing hands, down from last week's morning average of 943 million.
Despite the falls in the Nikkei and Topix, advancing shares outnumbered declining ones 792 to 679.
"For a while, there probably will not be many factors out of Japan that prompt market players to chase share prices higher," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management, adding that short-term moves in Tokyo shares are likely to take their cues from overseas equities markets.
Market players say attention has begun shifting to the outlook for corporate earnings, with the next quarterly reporting season set to begin next month.
Shares in information services company CSK Holdings Corp retreated 4.1 percent to 402 yen after it said it would bolster its capital by 52 billion yen ($563 million) and cut its annual earnings forecast to a loss instead of a profit.
Among exporters, Canon fell 2.5 percent to 3,500 yen and Toyota Motor Corp slipped 1.3 percent to 3,820 yen.
But energy-linked shares gained, with oil and gas field developer Inpex rising 3.1 percent to 764,000 yen.
Trading house Mitsubishi Corp rose 1.2 percent to 1,899 yen and rival Mitsui & Co Ltd rose 1.3 percent to 1,216 yen, also helped by firmer prices for commodities.
Oil prices had risen 4.5 percent on Tuesday, their biggest gain in nearly three weeks, as weakness in the U.S. dollar fired up inflation fears and triggered a rush of buying across commodities markets. (Editing by Edwina Gibbs)