Nikkei flat as trade woes, strong yen saps risk appetite; SoftBank Group falls

* SoftBank Group takes hefty negative points from Nikkei
* Some manufacturers gain after dropping sharply in May
* Casio Computer soars on share buyback announcement

By Ayai Tomisawa
TOKYO, June 4 (Reuters) - Japan's Nikkei ended nearly flat
in choppy trade on Tuesday as festering trade tensions and a
stronger yen curbed risk appetite, while extended losses for
index-heavy SoftBank Group added to the overall pressure on the
market.
The Nikkei share average .N225 dropped 0.01% to 20,408.54,
after in and out of positive territory.
Escalating trade tensions between the United States and
China have sapped investor risk appetite and rattled financial
markets in the past month. In Japan, the Nikkei has lost 8%
since the beginning of May.
Overnight, there was more downbeat news, with the Nasdaq
.IXIC sliding into correction mode as the index lost more than
10% from its May 3 closing record. U.S. factory activity also
disappointed, with the U.S. Institute for Supply Management's
gauge of manufacturing activity unexpectedly falling in May to
the weakest level in more than 2-1/2 years amid global trade
tensions.
During Asian trade, the dollar stood 0.1% easier at 107.980
yen JPY= after brushing 107.860, its lowest since Jan. 10.
"There are negative catalysts filled in the market such as
the poor U.S. ISM, the weak Nasdaq market and a rising yen,"
said Takuya Takahashi, a strategist at Daiwa Securities.
But Takahashi said that sharp losses in manufacturers'
stocks over the past month triggered temporary short-covering.
Fanuc Corp 6954.T rose 2.2% after dropping 12% over the
past month, while Tokyo Electron 8035.T gained 3.2% after
shedding 15%.
A drop in the U.S. technology sector overnight chilled
investor sentiment, dragging down SoftBank Group Corp 9984.T
by 3.3%. The stock took a hefty negative 35 points off from the
Nikkei, with traders citing concerns about the profitability of
its tech-focused Vision Fund.
"Investors are starting to question the Vision Fund's
investment performance. They are questioning technology
companies' valuations whose sales are soaring but not the
profitability," said Makoto Kikuchi, the chief executive of
Myojo Asset Management.
SoftBank Group stock tumbled 6.2% on Monday after the Wall
Street Journal reported that the company's bid to raise a second
mega fund has met with a chilly reception from some of the
world's biggest money managers.
Ono Pharmaceutical 4528.T dropped 2.3% after Kyodo news
reported that Japan's health ministry warned that taking the
company's cancer treatment Opdivo or Merck & Co's MRK.N
Keytruda, marketed by MSD in Japan, carried the risk of serious
side effects.
Casio Computer 6952.T surged 1.7% after the company said
that it will buy back up to 5 billion yen of its own shares.
The broader Topix .TOPX added 0.01% to 1,499.09.

(Editing by Shri Navaratnam & SImon Cameron-Moore)