* Support seen solid at 10,100, near 25-day moving average
* Nikkei takes cues from swings in Chinese shares
By Masayuki Kitano
TOKYO, Aug 18 (Reuters) - Japan's Nikkei share average inched up 0.2 percent on Tuesday, as Shanghai shares gained some respite after their slide the previous day on fresh worries that a rally in risk assets may have gone too far.
Mitsubishi Corp and other trading houses lost ground after commodities fell on growing doubts about economic recovery, though this was countered by gains in defensive shares -- seen as resilient in the face of economic uncertainty -- such as telecommunications and retailers.
But the big focus was China after shares there plunged 5.8 percent on Monday.
The Shanghai Composite Index swung in and out of positive territory during the day, and was broadly steady when the Nikkei closed. Shanghai shares were last up 1.7 percent.
Tokyo analysts were a bit sceptical about how much weight should be placed on Chinese share movements, noting that sharp gains in global markets since March had primed them for profit-taking.
"Everybody realises that the share prices seem top-heavy, and are taking a wait-and-see stance, based on the assumption that shares will test the downside for now," said Tomomi Yamashita, fund manager at Shinkin Asset Management.
The benchmark Nikkei rose 0.2 percent or 16.35 points to 10,284.96. It tumbled 3.1 percent on Monday, its biggest one-day percentage fall in nearly five months.
The broader Topix was virtually flat, edging up 0.07 point to 949.66.
The Nikkei has retreated after hitting a 10-month intraday high of 10,630.38 last week, its rise having stalled just short of 10,800, a key resistance level where the top of the cloud lies on weekly Ichimoku charts. A rise above that level would be a bullish signal.
Market analysts said they expected support to hold for the benchmark Nikkei around 10,100, or just above the 25-day moving average, although some investors see a risk of the Nikkei falling below 10,000 if Chinese shares were to fall further.
Casio Computer Co Ltd jumped 7.1 percent to 798 yen after Credit Suisse lifted its rating to "outperform" from "underperform", saying the brokerage expects an earnings recovery in the firm's loss-making businesses including mobile phone handsets.
Sumitomo Mitsui Construction jumped 11 percent to 111 yen after the Nikkei business daily said the contractor has won a 40 billion yen ($423.3 million) order to build a bridge in Vietnam with heavy machinery maker IHI Corp. IHI was up 0.6 percent at 175 yen.
Shares of companies that produce medical masks and fabrics used to make them added to the previous day's gains, with Shikibo Ltd rising 6.7 percent to 207 yen after climbing 6 percent on Monday. Daiwabo Holdings rose 5.3 percent to 437 yen and Fujibo Holdings climbed 3.9 percent to 162 yen.
Such shares have jumped in the wake of news on Saturday of Japan's first death from H1N1 flu.
But trading companies lost ground as metals and oil prices fell on Monday, with Mitsubishi Corp, Japan's largest trader, losing 3 percent to 1,865 yen. (Additional reporting by Elaine Lies; Editing by Hugh Lawson)