* Trump rally may have been losing momentum - traders
* Steel sector weak after Moody's expresses negative views
By Ayai Tomisawa
TOKYO, Nov 30 (Reuters) - Japanese stocks edged up on
Wednesday morning on the back of Wall Street's strength, but
gains were limited as most investors stayed on the sidelines
ahead of an OPEC meeting to decide on production cuts and a
crucial referendum in Italy.
The Nikkei share average tacked on 0.2 percent to
18,345.95 in midmorning trade.
The benchmark index has risen 13 percent after Donald
Trump's upset election win earlier this month, underpinned by
expectations that the incoming administration would boost
economic growth through increased infrastructure spending,
corporate tax cuts and reduced regulation.
But traders said the post-U.S. election rally may be losing
"The expectations phase will likely end soon as investors
are focused on what the real impact of the Trump administration
would be on the market," said Yoshinori Shigemi, a global market
strategist at JPMorgan Asset Management.
On the day, Shigemi expects subdued activity as traders
looked to developments at the Organization of the Petroleum
Exporting Countries (OPEC) meeting in Vienna later in the day.
He also said that investors were cautious as they waited for
the U.S. jobs data on Friday and a referendum in Italy on
constitutional change on Sunday, which could unseat the
government of Prime Minister Matteo Renzi and stoke a nascent
Exporters were mixed, with Honda Motor Co rising
2.1 percent, Nissan Motor Co falling 0.4 percent and
Panasonic Corp gaining 2.5 percent.
The dollar was steady at 112.430 yen. It had surged
to 113.340 overnight on robust revised U.S. GDP data that showed
the U.S. economy grew more quickly than initially thought in the
third quarter for its best performance in two years.
Brokers were solidly bid, with Nomura Holdings
gaining 1.0 percent and Daiwa Securities advancing 1.5
However, iron and steel stocks languished on outlook
worries, with Nippon Steel & Sumitomo Metal Corp
dropping 3.0 percent and JFE Holdings shedding 3.1
Moody's Investors Service said that the outlook for Asian
steelmakers is negative in 2017 because demand from China will
contract. It also said that trade frictions will curb steel
exports and production in Japan, Korea and Taiwan, which export
around 40-50 percent of their steel output.
The broader Topix rose 0.2 percent to 1,471.41 and
the JPX-Nikkei Index 400 added 0.2 percent to
(Editing by Shri Navaratnam)