Nikkei flat after hitting 4-mth low, JAL gains

TOKYO, Nov 25 - Japan's Nikkei stock average was flat on Wednesday after hitting a four-month intraday low, with tech shares and banks sold amid persistent concerns about equity funding, a rising yen and uncertainty about government economic policy. Japan Airlines Corp <9205.T> edged up 2.3 percent a day after its shares fell to a record low on growing investor worries that Asia's largest airline by revenue could face bankruptcy as it struggles to win an agreement on pension cuts. [ID:nSP480329]

Analysts said that while short-covering dominated on Wednesday, the market remained under pressure from a number of long-term concerns. "Certainly there seem to be divisions in the government and this means investors currently have no good idea of which direction it's going to move in, which increases distrust," said Hiroaki Osakabe, a fund manager at Chibagin Asset Management.

"But there are also a lot of worries about equity funding and the impact of the strong yen on company balance sheets."

The benchmark Nikkei <.N225> edged up 3.60 points to 9,405.18 after earlier falling as low as 9,366.33, a four-month intraday low. The broader Topix <.TOPX> was also flat at 829.03.

Analysts were wary, noting that the Nikkei has neared a crucial support line at the 200-day moving average, which now comes in around 9,350, and that whether it can hold the line here may be critical for future moves.

The dollar fell to its lowest in seven weeks against the yen and was down 0.3 percent at 88.22 yen by midday. <JPY=> ((elaine.lies@thomsonreuters.com; +81 3 6441 1807; Reuters Messaging:elaine.lies.reuters.com@reuters.net)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit http://topnews.session.rservices.com * BridgeStation: view story .134 * Reuters Plus: from your WebDSS screen For more information on Top News, visit http://topnews.reuters.com))