Japan's Nikkei treads water as investors mull BOJ, Fed paths

By Kevin Buckland TOKYO, Feb 20 (Reuters) - Japan's Nikkei share average was nearly flat on Monday, as cautious traders awaited a week of important U.S. and global economic data as well as testimony by the incoming Bank of Japan (BOJ) leadership team. The Nikkei edged 0.02% lower to 27,507.33 as of the midday break, close to the middle of its range since Jan. 24. The broader Topix gained 0.24% to 1,996.78. The tone was subdued after a mixed session on Wall Street on Friday and U.S. equity futures pointed to a slightly lower restart following Monday's national holiday. Energy shares led Nikkei decliners amid a slide in crude oil, although a weakening yen lent some support to the overall market. Earnings produced a big winner in tiremaker Yokohama Rubber , which soared 10.2%. U.S. E-mini stock futures ticked 0.06% lower, while the yen was last down 0.2% to 134.365 per dollar . "Japanese investors are waiting for several important events this week, making it difficult for the Nikkei to move," said Nomura Securities strategist Maki Sawada, predicting the equity benchmark would continue to fluctuate in a tight range around 27,500. Of the Nikkei's 225 components, 150 rose versus 69 that fell, with six flat.

Heated U.S. economic data and on-the-whole hawish Federal Reserve commentary have been feeding expectations of higher Fed rates for longer. Inflation figures this week will be parsed for further clues, as will key purchasing manager surveys from the United States and other major economies. The marquee event though for Japanese markets will be BOJ Governor nominee Kazuo Ueda lower house testimony on Friday, which will be followed on Monday by an appearance in the upper house. Although Ueda has shown himself so far to be a policy dove, investors still expect an end to unpopular yield curve controls during his tenure, and will watch for indications of how soon that could be. (Reporting by Kevin Buckland; Editing by Rashmi Aich)