Japanese stocks end flat, trade worries hamper exporters

* Investors prefer defensive stocks amid trade war
uncertainties
* Rakuten gains on cashless service expansion

By Hideyuki Sano and Ayai Tomisawa
TOKYO, June 6 (Reuters) - Japan's Nikkei ended flat in
choppy trade on Thursday with investor sentiment hit by concerns
about the U.S. trade war with Mexico and China, which shifted
support toward firms with strong domestic exposure away from
those reliant on oveseas trade.
The Nikkei share average .N225 ended 0.01% lower to
20,774.04, having flirted in positive territory for part of the
session.
The broader Topix .TOPX shed 0.3% at 1,524.91.
"Although expectations of rate cuts by the Federal Reserve
have led to rallies in U.S. shares, Japanese shares are
benefiting less because U.S. rate cuts would strengthen the
yen," said Masahiro Ayukai, senior investment strategist at
Mitsubishi UFJ Morgan Stanley Securities.
The Japanese yen hit a five-month high on Wednesday.
Worries about the trade wars U.S. President Donald Trump is
waging on many fronts hampered semiconductor shares and other
exporters.
Murata Manufacturing 6981.T fell 3.9% while TDK 6762.T
dropped 3.4% and Taiyo Yuden 6976.T plunged 4.7%.
Nissan Motor 7201.T fell 1.7% and Mitsubishi Motors
7211.T tumbled 5.9% after Fiat Chrysler FCHA.MI said it had
abandoned its $35 billion merger offer for Renault RENA.PA ,
the alliance partner of the two Japanese firms.
Uncertainties over the global trade environment goaded
investors to seek refuge in defensive and domestic
demand-oriented shares, with the wider adoption of cashless
services by the government and companies offering a good theme
for investors to latch on to.
Rakuten 4755.T jumped 4.7% after the e-commerce company
announced a tie-up with East Japan Railway 9020.T on cashless
services.
East Japan Railway rose 1.1% while West Japan Railway
9021.T gained 1.7%.
Elsewhere, drugmaker Dai-ichi Sankyo 4568.T extended its
recent gains on optimism over its cancer drug, rising 1.7% and
hitting a record high.
Drugstore chain operator Cocokara Fine 3098.T jumped 5.7%,
extending its gains so far this week to more than 30%, as it has
become a target of alliance by two of its bigger rivals, Sugi
Holdings 7694.T and Matsumotokiyoshi 3088.T .
Car park operator Park 24 4666.T jumped 4.6% in heavy
trade, extending its recovery after a hit taken on the company's
weaker-than-expected earnings last month.

(Editing by Sam Holmes)