Nikkei edges up in choppy trade; weak yen supports exporters

* Tokyo Electron, TDK rise
* Defensive stocks underperform

By Ayai Tomisawa
TOKYO, June 11 (Reuters) - Japan's Nikkei ended higher in
choppy trade on Tuesday as cyclical stocks, inclding exporters,
gained on the back of a weaker yen, while defensive firms
underperformed.
The Nikkei share average .N225 rose 0.3% to 21,204.28,
after gaining 1.2% on Monday.
On Monday, Japanese stocks recovered above the 21,000 level
and hit a two-week high, with buyers encouraged by hopes for a
U.S. interest rate cut and relief over U.S. President Donald
Trump withdrawal of a tariff threat against Mexico.
Strategists said investors were awaiting more cues on U.S.
monetary policy from the Federal Reserve's June 18-19 policy
meeting as well as developments in the U.S.-China trade war
ahead of the G20 summit later this month.
Trump said on Monday he was ready to impose another round of
punitive tariffs on Chinese imports if he cannot make progress
in talks with Chinese President Xi Jinping at the G20 summit.
"Japanese stocks need more catalysts to rise further, but
the Nikkei's downside should be supported as it has recovered
its 25-day moving average (of 21,072.19)," said Takuya
Takahashi, a strategist at Daiwa Securities.
Financials were supported by higher U.S. yields, with
Mitsubishi UFJ Financial Group 8306.T rising 1.5% and Sumitomo
Mitsui Financial Group 8316.T adding 1.2%.
Exporters were also up after the dollar advanced 0.2% to
108.65 yen.
Tokyo Electron 8035.T gained 2.4%, TDK Corp 6762.T rose
1.8% and Yaskawa Electric Corp 6506.T surged 3.4%.
Renesas Electronics 6723.T soared 4.4% after the company
said it established the 'Automotive Electronic Joint Laboratory'
with SAIC Volkswagen Automobile Co.
Other cyclical stocks were also in demand, with sea
transport and steel makers attracting buyers. Mitsui OSK Lines
9104.T surged 1.5% and Nippon Steel Corp 5401.T rose 1.1%.
MonotaRO 3064.T , which provides factory materials through
mail order, jumped 7.4% after its May sales surged 22.6% on the
year.
Defensive stocks such as railroad shares and drugmakers
underperformed. East Japan Railway 9020.T dropped 0.8% and
Astellas Pharma 4503.T slipped 1.2%.
The broader Topix .TOPX gained 0.5% to 1,561.32.


(Editing by Shri Navaratnam)