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* Tokyo Electron, TDK rise
* Defensive stocks underperform
By Ayai Tomisawa
TOKYO, June 11 (Reuters) – The Nikkei of Japan ended up in an unstable trade on Tuesday, as cyclical stocks, including exporters, advanced on a weaker yen, while defensive companies underperformed. perform.
The average Nikkei stock rose 0.3% to 21,204.28, after rising 1.2% on Monday.
On Monday, Japanese stocks recovered above the 21,000 level and reached their highest level in two weeks. Buyers were encouraged by the hope of a reduction in US interest rates and a relief from the withdrawal of US President Donald Trump from a tariff threat against Mexico.
The strategists said investors were waiting for more information on US monetary policy at the Federal Reserve's June 18-19 general policy meeting, as well as on the evolution of the US-China trade war ahead of G20 summit to be held later this month.
Trump said on Monday that he was ready to impose another round of punitive tariffs on Chinese imports if he could not advance negotiations with Chinese President Xi Jinping at the G20 summit.
"Japanese stocks need more catalysts to continue to increase, but the Nikkei should be supported because it has returned to its 25-day moving average (21,072.19)," said Takuya Takahashi, a strategist at Daiwa Securities.
Financial results were supported by higher US yields, with a 1.5% increase in Mitsubishi UFJ Financial Group and a 1.2% increase in Sumitomo Mitsui Financial Group.
Exporters also increased after the 0.2% rise in the dollar to 108.65 yen.
Tokyo Electron gained 2.4%, TDK Corp rose 1.8% and Yaskawa Electric Corp jumped 3.4%.
Renesas Electronics climbed 4.4% after the company announced the creation of the "Automotive Electronics Coupling Laboratory" with SAIC Volkswagen Automobile Co.
Other cyclical stocks were also in demand, shipping and steelmakers attracting buyers. Mitsui OSK Lines grew by 1.5% and Nippon Steel Corp by 1.1%.
MonotaRO, which supplies mail order materials, jumped 7.4% after a 22.6% increase in sales in May.
Defensive stocks such as railroad stocks and drug manufacturers underperformed. East Japan Railway lost 0.8% and Astellas Pharma lost 1.2%.
The wider Topix gained 0.5% to 1.561.32. (Edited by Shri Navaratnam)
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