Nikkei edges higher as markets braced for G20, focus on Xi-Trump meet

* Oil shares outperform on tensions in Middle East
* Investors unwind both long and short positions - analyst

By Ayai Tomisawa
TOKYO, June 24 (Reuters) - Japan's Nikkei edged higher in
cautious early Monday trade as investors looked ahead to this
week's G20 summit amid a backdrop of trade and geopolitical
tensions.
The Nikkei share average .N225 was up 0.1% to 21,278.55 at
the midday break, after traversing positive and negative
territory.
Analysts said investors may keep to the sidelines as they
focus on a possible meeting between Chinese and U.S. leaders on
the sidelines of the G20 summit scheduled on June 27-29 in
Osaka, Japan.
China's President Xi Jinping will attend the G20 summit,
state-run Xinhua news agency said on Sunday, giving the first
official confirmation of his attendance at a gathering where he
is expected to meet U.S. President Donald Trump. Markets are
hoping the two leaders could help restart stalled talks to
resolve a months-long trade war. "It's good that Trump and Xi are meeting but we still don't
know what comes out of the meeting so investors are unwinding
both of their long and short positions," said Yutaka Miura, a
senior technical analyst at Mizuho Securities.
Tensions in the Middle East also kept investors on edge.
Trump said on Sunday he was not seeking war with Tehran
after a senior Iranian military commander warned any conflict in
the Gulf region could spread uncontrollably and threaten the
lives of U.S. troops. But U.S. Secretary of State Mike Pompeo also said
"significant" sanctions on Iran would be announced on Monday
aimed at further choking off resources that Tehran uses to fund
its activities in the region.
That kept oil prices high, and pushed up Cosmo Energy
Holdings 5021.T 1.2% and Idemitsu Kosan 5019.T 1.4%.
Exporters - especially those with large exposure to China -
were down as the dollar remained pressured against the yen, with
signs the Federal Reserve might move to cut rates soon denting
the greenback.
Tokyo Electron 8035.T shed 1.7% and TDK Corp 6762.T
dropped 1.3%.
The broader Topix .TOPX was flat at 1,546.24.

(Editing by Shri Navaratnam)