Nikkei edges up; sagging steel and non-ferrous metal sectors cap gains

TOKYO, March 7- Japan's Nikkei share average pared earlier losses on Wednesday, edging up, although gains were limited as the resignation of a key White House adviser raised fears of a global trade conflict, which hurt steel and non-ferrous metals sectors.

The Nikkei .N225 was up 0.1 percent at 21,442.20 as of0212 GMT in an unstable session, during which it went to as lowas 21,201.94.

"The Nikkei bounced, making futures-led gains, asspeculators came in after seeing that index held up relativelywell despite earlier losses," said a dealer at a domesticbrokerage.

"There's also speculation that public pension funds came inas buyers, enabling the index to rise."

Of Tokyo's 33 sub-sectors, 11 were in the red. Iron andsteel .ISTEL.T fell 1.25 percent and non-ferrous metals .INFRO.T shed 0.45 percent.

These sectors underperformed, seen suffering if U.S.President Donald Trump follows through with the threat ofimposing tariffs on steel and aluminium imports.

The resignation of top U.S. economic adviser Gary Cohn, seenas a bulwark against protectionist forces within the Trump camp,was expected to give White House trade sceptics the upper hand. of defence equipment companies sagged after tensionsin the Korean Peninsula eased amid a perceived thawing ofregional tensions, following news on Tuesday that South Koreawould hold its first summit with the North in more than adecade.

Ishikawa Seisakusho Ltd 6208.T lost 16.6 percent. Howa Machinery Ltd 6203.T , which makes firearms as well as machinetools and construction equipment, plunged up to 18.3 percent. Nippon Avionics Co 6946.T , maker of command and control systems for naval vessels, retreated 4.1 percent.