* Support seen at 10,100, near 25-day moving average
* Nikkei takes cues from swings in Chinese shares
* Resource-related shares dip, defensive stocks edge up
* Trade in Tokyo shares driven by futures
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 1.4 percent.
Market players were a bit sceptical about how much weight should be placed on Chinese share movements, saying they were due for a pullback after their sharp rally so far this year.
The same holds true for the Nikkei, which hit 10-month intraday and closing-level highs last week, and is still up 46 percent from a trough hit in March.
"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.
There is uncertainty about the economy's outlook, partly because it is being supported by fiscal stimulus rather than private-sector demand, Yamashita said.
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.
Trade fell off slightly, with 1.85 billion shares changing hands on the Tokyo exchange's first section compared with last week's daily average of 1.93 billion.
Trading in Nikkei futures was more active, with volume hitting a one-month high of 114,100 contracts.
There may have been some short-covering in futures by market players who sold the previous day, said Tsutomu Yamada, market analyst at Kabu.com Securities.
SUPPORT NEAR 10,100
The Nikkei has retreated after hitting a 10-month intraday high of 10,630.38 last week, its rise having stalled just short of resistance at 10,800, which is roughly a 50 percent retracement of its drop from a peak near 14,600 hit in June 2008 down to a trough just below 7,000 hit last October.
The 10,800 level is also resistance because that is where the top of the cloud lies on weekly Ichimoku charts.
Market analysts said they expected the Nikkei to find support 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 13 percent to 113 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 rose 0.6 percent to 175 yen.
Shares of firms 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.
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 Chris Gallagher)