* Nikkei edges down as chip shares slide on profit-taking
* JAL extends gains further
* Wait and see mood strong ahead of Japanese earnings
By Elaine Lies
TOKYO, Oct 21 (Reuters) - Japan's Nikkei stock average lost 0.3 percent on Wednesday in thin trade as chip-linked shares such as Advantest Corp <6857.T> fell after anaemic U.S. home and producer price data prompted investors to book profits on recent gains.
Shipping lines climbed after a key shipping index rose to a more than two-month high, while heavy machinery maker IHI Corp <7013.T> rose on a media report of upbeat earnings as the start of Japan's results season nears.
New construction of U.S. homes rose less than expected in September, and U.S. producer prices posted an unexpected decline, raising concerns about the pace of economic recovery. [ID:nN20424995]
But analysts warned about making too much of the data, noting that global markets have been ripe for profit-taking after recent gains helped take them far from March lows. Even the Nikkei, a relative laggard, has risen some 47 percent.
"The data was really used as nothing more than an excuse for investors to lock in profits and it doesn't signal a change in trends for the markets," said Hideyuki Ishiguro, a supervisor in the investment advisory section of Okasan Securities. "The overall direction is still up, but stocks are likely to take a bit of a breather today ahead of the Chinese data tomorrow and as Japanese earnings get underway."
The benchmark Nikkei <.N225> slipped 31.58 points to 10,305.26 after hitting a three-week closing high on Tuesday, while the broader Topix <.TOPX> fell 0.4 percent to 910.01.
China's GDP figures for the third quarter are due on Thursday, with economists polled by Reuters expecting year-on-year growth of 8.9 percent, while Japan's earnings season swings into full gear next week. "While earnings are expected to be good, solid figures have already been factored in. So we may not get the lift we otherwise might from this without some really positive surprises," said Hiroaki Kuramochi, equity manager at Tokai Tokyo Securities. JAL UP, CHIPS FALL
Struggling Japan Airlines Corp <9205.T> (JAL) rose 5.1 percent to 124 yen, bringing its total gains this week close to 24 percent after falling 26 percent the week before.
A government-appointed task force crafting a revival plan for JAL is seeking to double fresh capital for the carrier to $3.3 billion by tapping public and private funds, the Nikkei business daily said on Wednesday. [ID:nT239064]
Chip tester maker Advantest fell 2.7 percent to 2,380 yen and chip equipment maker Tokyo Electron <8035.T> lost 2.4 percent to 5,630 yen. Nikon Corp <7731.T>, a maker of steppers, lost 1.2 percent to 1,763 yen.
Mitsubishi Corp <8058.T> and other commodity-linked shares
slipped after commodity prices fell, with the Reuters/Jefferies
CRB commodity index <.CRB> down on Tuesday for the first time in
seven sessions. Oil prices also edged lower
Mitsubishi, Japan's largest trading house, shed 0.3 percent to 2,035 yen, while fellow trader Itochu Corp <8001.T> lost 0.7 percent to 610 yen.
Shipping firms advanced after the Baltic Exchange's main sea freight index <.BADI>, which tracks rates to ship dry commodities, rose to over a two-month high on Tuesday helped by stronger demand for coal and iron ore cargoes. [ID:nLK143189]
Mitsui O.S.K. Lines <9104.T> rose 1.6 percent to 576 yen, Kawasaki Kisen <9107.T> jumped 2.7 percent to 381 yen and Nippon Yusen KK <9101.T> added 2.5 percent to 369 yen. IHI Corp jumped 3.4 percent to 181 yen after the Nikkei business daily said it was likely to report around 15 billion yen ($166 million) in operating profit for the April-September period.
Trade was light on the Tokyo exchange's first section, with 823 million shares changing hands, compared with last week's morning average of 956 million.
Declining stocks outnumbered advancing ones by more than 2 to 1. (Reporting by Elaine Lies; Editing by Edwina Gibbs)