* Fanuc contributes most to Nikkei gain
* North Korea missile launch caps gains
* U.S.-China meeting in focus
By Ayai Tomisawa
TOKYO, April 5 Japan's Nikkei share average rose
on Wednesday morning after the yen rally paused, but financial
stocks slipped on falling U.S. yields, while North Korea's
launch of a ballistic missile hurt the overall market sentiment.
Investors kept to the sidelines as focus turned to a crucial
meeting between U.S. President Donald Trump and Chinese
President Xi Jinping later in the week.
The Nikkei rose 0.3 percent to 18,873.34 in
mid-morning trade, after falling to a 10-week low the previous
"Investors are on the sidelines as they are cautious ahead
of the U.S.-China meeting, Trump's economic policies and U.S.
jobs data," said Takuya Takahashi, a strategist at Daiwa
"It may take a while for the Nikkei to trade above the
19,000-mark again and stay above that line."
While gains were limited, index-heavyweight Fanuc Corp
soared 3.2 percent, adding 28 points to the benchmark
North Korea fired a ballistic missile on Wednesday from its
east coast into the sea off the Peninsula, South Korea's
military said, ahead of a summit between U.S. and Chinese
leaders who are set to discuss Pyongyang's arms programme.
Market participants said that overall impact from North
Korea's missile launch is limited to the market although it has
made investors averse to risk.
Automakers continued to slip as dismal March U.S. auto sales
dragged on sentiment. Toyota Motor Corp dropped 1.2
percent and Honda Motor Co shed 1.9 percent.
Banks and insurers, which seek higher yielding products,
underperformed after benchmark U.S. Treasury yields touched
their lowest in more than five weeks.
Mitsubishi UFJ Financial Group declined 1.3
percent, Mizuho Financial Group fell 0.9 percent and
Dai-ichi Life Holdings tumbled 1.6 percent.
The broader Topix was flat at 1,504.31 and the
JPX-Nikkei Index 400 was flat at 13,468.21.
(Reporting by Ayai Tomisawa; Editing by Vyas Mohan)