Nikkei tick up in sympathy with Hong Kong, outlook cloudy

* Nikkei gets brief boost after Hong Kong shares jump
* Outlook murky with eyes on trade, Fed
* Domestic demand-related shares shine

By Hideyuki Sano
TOKYO, June 17 (Reuters) - Japanese share prices ticked up
on Monday, erasing initial losses, after Hong Kong shares gained
after Hong Kong's leader indefinitely delayed an unpopular
extradition bill that would allow citizens to be sent to
mainland China for trial.
Still, uncertainties over the global economy, U.S.-China
trade frictions and the U.S. Federal Reserve's policy stance
kept many investors on sidelines.
Japan's Nikkei share average .N225 rose 0.11% to 21,140
but the broader Topix .TOPX was down 0.24% at 1,543.06.
The market got a brief boost after Hong Kong's Hang Seng
Index .HSI opened sharply higher after the territory's leader
Carrie Lam climbed down on the extradition bill during the
weekend. "Last week the issue looked as if it would become another
thorny point between the United States and China. As the bill is
now being postponed indefinitely, things will likely calm down,
which is good for markets," said Hiroyuki Ueno, senior
strategist at Sumitomo Mitsui Trust Asset Management.
Overall, however, the market lacked traction as investors
remain unsure how the United States and China can resolve their
disputes over tariffs and technology.
It was also unclear whether U.S. President Donald Trump and
Chinese leader Xi Jinping will meet on the sidelines of a Group
of 20 summit in Osaka next week.
"The moment you would have a headline that the two won't
meet in Osaka, the Nikkei could fall 500 points. Investors would
want to raise the ratio of cash as much as possible," said Fujio
Ando, advisor at Chibagin Securities.
Soft industrial output data from China on Friday added to
the evidence that the economic disputes between the world's two
biggest economies are taking toll on growth worldwide.
Most investors now expect the U.S. Fed to drop hints of a
future rate cut when its policy makers meet later this week.
Investors scurried to shares of companies that cater to
domestic demand and have small exposures to the global economy.
Morinaga Milk 2264.T jumped as much as 11.9%, helped by a
brokerage upgrade, while internet and e-commerce firm Rakuten
4755.T rose up to 3.4% to 20-month highs.
Semi-conductor shares were abandoned, with Keyence 6861.T
falling 1.3% and Shin-Estu Chemical 4063.T 1.2%.
Japan Display 6740.T fell as much as 10.5% after the
embattled display maker said it has received notice from TPK
Holding Co Ltd 3673.TW that the Taiwanese flat screen maker
has decided against investing in the firm. (Editing by Simon Cameron-Moore)