June 29, 2018 / 6:42 AM / in 4 months

Nikkei, tracking Asia's bounce, pares earlier losses to end higher

* Nikkei pares earlier losses, ends the day up 0.15 pct

* Index still down 0.95 pct in week punctuated by trade tensions

* Sharp jumps after cancelling share issue

By Ayai Tomisawa and Shinichi Saoshiro

TOKYO, June 29 (Reuters) - Japanese shares pared earlier losses and ended Friday on modest gains as Asian equities rebounded from nine-month lows, with the yen’s weakening against the dollar also providing support.

The Nikkei 225 share average rose 0.15 percent to 22,304.51 after dropping to as low as 22,145.48.

The benchmark index still fell 0.95 percent for the week during which simmering worries over a trade row between the United States and its major trading partners took a toll on investors’ risk appetite.

Twenty-two of Tokyo’s 33 sub-indexes rose, led by defensive shares such as pharmaceuticals and foods, while the losers included oil and coal products which slipped as crude oil prices pulled back from 3-1/2-year peaks.

Air-conditioner maker Fujitsu General Ltd was up 3.7 percent after the Meteorological Agency declared an end to the rainy season for Tokyo and the surrounding Kanto region, signalling the start of summer.

Brewers Asahi Group Holdings and Kirin Holdings climbed 0.44 percent and 0.47 percent respectively on summer’s traditional spike in sales of beer and other drinks.

Sharp Corp jumped 15.19 percent and was the biggest percentage gainer on the board as dilution fears faded after it cancelled plans to issue up to $2 billion in new shares over fears of market volatility driven by trade disputes.

The company first announced the plan on June 5, saying it would use the funds mostly to buy back preferred shares that it issued to banks in return for a financial bailout in 2015. Sharp stock had fallen 21 percent since the announcement.

“Since the company had announced such a large share issuance, the market was relieved to learn the cancellation news,” said Yoshihiro Okumura, general manager at Chibagin Asset Management.

The broader Topix rose 0.23 percent to 1,730.89. (Reporting by Shinichi Saoshiro Editing by Eric Meijer)

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