Japan shares edge up but momentum limited after rally; techs supported

In this article:

* Nikkei up roughly 0.1%, briefly touches 2-month high

* Market takes a breather after previous day's surge

* Techs shares supported after Wall St peers rally

By Shinichi Saoshiro

TOKYO, July 2 (Reuters) - Japanese shares edged up on Tuesday although the market's momentum was limited following the previous day's relief rally over U.S.-China trade talks, while tech shares managed to draw support from gains by their Wall Street counterparts.

Japan's Nikkei share average was up 0.09% at 21,749.08 as of 0136 GMT after brushing 21,764.62, its highest since May 7.

The index had gained 2.1% on Monday as risk sentiment improved after the United States and China agreed to restart trade talks during a G20 summit over the weekend.

"Profit-taking after the previous day's big gains is capping the market," said Soichiro Monji, senior strategist at Sumitomo Mitsui DS Asset Management.

"The trade issue is an ongoing process which cannot be digested at once. Meanwhile the market will turn to fundamentals, notably the U.S. economy, and corporate results for near-term guidance."

Tech-related companies advanced after their U.S. peers jumped overnight.

Tokyo Electron gained 2.8%, Mitsubishi Electric Corp added 1% and Screen Holdings climbed 3%.

Workman rose 3.3% after the maker and distributor of workwear reported that its existing store sales increased 35.8% in June on a year-on-year basis.

Software company System Integrator Corp rallied more than 6% after it revised up its operating profit forecast for the six months through August to 200 million yen ($1.85 million) from 140 million yen.

Of Tokyo's 33 subindexes, 20 were in positive territory led by sea transport. The decliners were led by mining .

The broader Topix added 0.12% to 1,586.89. ($1 = 108.4000 yen) (Editing by Sam Holmes)

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