Nikkei inches up, sentiment still fragile on domestic, external pressure

* Nikkei hobbled as risk sentiment still weak
* Exporters, tech shares pare gains
* Leopalace soars after Reno raises stake
* Suzuki falls on news of India antitrust probe on Maruti
Suzuki

By Ayai Tomisawa
TOKYO, May 22 (Reuters) - Japan's Nikkei edged up on
Wednesday in an overall cautious market as data showed another
drop in the nation's exports for April, which offset a few
positive signs for the economy.
Exporters and technology shares pared early gains and the
Nikkei share average .N225 ended 0.1% higher at 21,283.37,
after trading in a narrow range as sentiment remained fragile
with no signs of de-escalation in the Sino-U.S. trade war.
Data earlier in the day showed Japan's exports contracted
for a fifth month in April, and though machinery orders
unexpectedly rebounded the economic outlook suggested a
difficult road ahead. "The market is still tense so there is a risk of Japanese
stocks to further slide," said Yoshinori Shigemi, a global
market strategist at JPMorgan Asset Management.
"The yen's weakness is triggering short-covering but the
situation hasn't changed yet."
The dollar hit a two-week high of 110.675 yen JPY= in the
previous session, before edging lower at 110.48 at 0625 GMT.
Since the White House added China's Huawei HWT.UL to a
trade blacklist last week, several global companies have
suspended business with the world's largest telecoms equipment
maker.
The United States has temporarily eased trade restrictions
on Huawei, however, to minimise disruptions for its customers.
"Japan remains a hostage to global macro issues and cannot
really move until more clarity out of the U.S.-China trade
talks," said Takeo Kamai, head of execution services at CLSA
Securities Japan.
He said investor focus was now on talks between Japan and
the United States scheduled for this weekend.
U.S. Trade Representative Robert Lighthizer will visit Japan
on May 24 to meet Economy Minister Toshimitsu Motegi to
accelerate trade talks ahead of a leaders' summit a few days
later, two sources with direct knowledge of the plan said on
Monday. Electric component makers, which tumbled on the previous
day, recovered slightly. Murata Manufacturing 6981.T added
0.3%, Hitachi High-Technologies 8036.T gained 1.2% and Taiyo
Yuden 6976.T surged 3.2%.
Leopalace 21 8848.T soared 5.7% after filings showed that
Reno KK raised its stake in the company to 14.13% from 12.56%.
Elsewhere, Suzuki Motor Corp 7269.T tumbled 5.5% after
sources told Reuters that India's antitrust regulator was
looking into allegations that Maruti Suzuki MRTI.NS resorted
to anti-competitive practices by controlling how its dealers
discounted cars. Suzuki Motor is its majority owner.
On the upside, nonferrous metal shares rose, tracking gains
in Chinese rare earth-related companies after news that Chinese
President Xi Jinping visited a rare earth firm in southern
China, sparking speculation the sector could be the next front
in the Sino-U.S. trade war.
Toho Titanium 5727.T rallied 3.8% and Osaka Titanium
Technologies 5726.T advanced 3.6%.
The broader Topix .TOPX shed 0.3% to 1,546.21.

(Editing by Shri Navaratnam)