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Nikkei slips, weighed by China stock fall on data
* Shanghai shares down 1.8 pct on data, weigh on Nikkei
* Minimal impact after BOJ holds off on easing -analyst
TOKYO Aug 10 (Reuters) - Japan's Nikkei average slipped into negative territory in thin trade on Tuesday, pushed down as Chinese shares fell after trade data for July showed imports were weaker than expected.
Market players said there was little impact from a Bank of Japan decision, announced just before the market reopened for the afternoon session, to keep interest rates steady and hold off on any new policy steps. [ID:nTOE678094]
The benchmark had ended morning trade up 0.5 percent, helped by a halt in the yen's advance against the dollar while investors waited to see if the U.S. Federal Reserve would consider or embark on new policy steps.
"Shanghai shares fell quite a lot, as did the rest of Asia, and this dragged the Nikkei lower. U.S. stock futures have turned negative as well," said Hiroaki Osakabe, a fund manager at Chibagin Asset Management.
Chinese imports for July were up 22.7 percent from a year earlier, the General Administration of Customs said, but this was lower than the market had expected and sent Shanghai shares .SSEC to end the morning session down 1.8 percent.
U.S. stock futures SPc1 slipped 0.5 percent.
The benchmark Nikkei .N225 edged down 0.3 percent or 28.01 points to 9,545, while the broader Topix .TOPX lost 0.4 percent to 853.82.
Speculation is rife that the Fed may signal the chance of further monetary easing and possibly drive the yen towards an all-time high above 80 yen to the dollar, although other market participants are more focused on potential boosts to the U.S. economy.
The Fed is expected to release a statement at 1815 GMT. [ID:nN09301078]
The Bank of Japan kept interest rates steady and held off on new policy steps, saving its limited policy options for when yen rises accelerate enough to damage a fragile economic recovery.
Market players said there was a greater chance of a strong yen if the Fed implemented steps that would likely lead to lower rates and with the BOJ keeping things unchanged, a move that could prove negative for stocks since a stronger yen eats into exporter profits when repatriated.
Exporters were mixed, with Sony Corp (6758.T) slipped 0.7 percent to 2,682 yen and Canon Inc (7751.T) flat, while Kyocera Corp (6971.T) edged higher.
