UPDATE 1-BlackRock to beef up ETFs in Japan - Nikkei

March 2 (Reuters) - BlackRock Inc (BLK.N) plans to broaden its lineup of exchange-traded funds as part of efforts to expand its Japanese operations, the Nikkei business daily said citing an interview with the chief executive of the U.S. asset management company.

Last December's acquisition of Barclays Global Investors -- including its iShares ETF brand -- has prepared BlackRock to broaden its product lineup and better meet clients' needs, Chief Executive Laurence Fink told the Nikkei.

With its iShares brand, Fink said BlackRock controls 48 percent of the global ETF market, which is estimated at $1 trillion, and added the firm will spend five years in Japan to establish the footing it has globally, the Nikkei said.

Describing Japan as a key market, Fink said he hopes to attract individuals as well as pension funds and other institutional investors, the daily reported.

With 21 trillion yen in assets under management in Japan, BlackRock is roughly equal to top domestic player Nomura Asset Management Co, the daily reported.

Fink said his firm will step up risk management services in Japan, and added that demand for risk management is growing rapidly as the Asian capital market expands, the Nikkei said. (Reporting by Isheeta Sanghi in Bangalore; Editing by Unnikrishnan Nair) ((isheeta.sanghi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: isheeta.sanghi.thomsonreuters.com@reuters.net))