Japanese shares struggle on trade, economic uncertainties

* Technology shares under pressure
* Outlook murky with eyes on trade, Fed
* Domestic demand-related shares shine
* Turnover 30% below average

By Hideyuki Sano
TOKYO, June 17 (Reuters) - Japanese share prices struggled
to make headway on Monday as 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 ended 0.03% higher at
21,124, helped by gains in a few of its heavyweights such as
SoftBank Group 9984.T and Fast Retailing 9983.T .
But the broader Topix .TOPX fell 0.45% to 1,539.74, with
decliners outnumbering advancers by 72-28, while the turnover at
the main board dropped to 1.65 trillion yen, more than 30% below
the average, reflecting a lack of enthusiasm.
Investors remain unsure how the United States and China can
resolve their disputes over tariffs and technology, and
uncertain 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. Yet
that could help to strengthen the yen against the dollar, to the
detriment of Japanese exporters who earn dollars overseas.
Against this backdrop, investors scurried to shares of
companies that cater to domestic demand and have small exposures
to the global economy.
Morinaga Milk 2264.T rose 13.5% to one-year high, helped
by a brokerage upgrade, while internet and e-commerce firm
Rakuten 4755.T rose 4.2% to 21-month highs.
In contrast, many technology shares continued to face heavy
selling pressure.
Keyence 6861.T dropped 1.5% while Tokyo Electron 8035.T
shed 2.4%, Nidec 6594.T 2.2% and Shin-Estu Chemical 4063.T
1.3%.
Anritsu Corp 6754.T dropped 2.1%. Its shares had been
flying high earlier this year on hopes of 5G equipment demand.
Japan Display 6740.T fell 7.0% 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)