Nikkei stabilises after selloff, market cautious before U.S. payrolls
* Market cautious before U.S. payroll report * Index-heavy weights up on hopes Nikkei will rise mid-term - fund manager * Volatile currency market keeps investors on edge - analyst By Ayai Tomisawa TOKYO, Dec 6 (Reuters) - Japanese stocks got some respite from two days of sharp falls on Friday morning, as investors bought index heavyweights such as SoftBank Corp and futures although trading was subdued ahead of the looming U.S. jobs data. The Nikkei tacked on 0.2 percent to 15,207.83 in mid-morning trade after falling earlier. The benchmark dropped 3.6 percent in the past two days, and is on track to post a 3.1 percent fall this week, the first weekly decline in a month. SoftBank Corp rose a modest 0.2 percent but was the most traded stock by turnover, while Fast Retailing Co added 0.1 percent and was the eighth most traded stock. Nomura NF Nikkei Avg Leverage Index Link ETF rose 0.7 percent and was the second most traded stock. "Most investors are either selling or staying on the sidelines today, but some foreigners are buying index-heavyweights as they believe that the Nikkei is on an uptrend in the mid-to-long term," said a chief portfolio manager at a Japanese asset management firm. Trading was choppy as investors cautiously awaited the U.S. payrolls report for November later Friday. The jobs data could strengthen or weaken the case for the Federal Reserve to begin tapering its monthly debt purchases of $85 billion at its policy meeting on Dec. 17 and 18, analysts said. The Topix gained 0.1 percent to 1,230.60. "After huge drops in the past two days, investors are comfortable with buying back Japanese shares," said Yoshiyuki Kondo, a market analyst at Daiwa Securities. "But at the same time, the yen's rise is making them wary." The dollar dropped to 101.71 yen and further away from the week's high of 103.37. "Volatility in the currency market has kept investors on the edge, so some investors tend to stay away from betting on exporters at the moment," Kondo said. Currency-sensitive exporters were mixed after suffering in the previous day. Toyota Motor Corp dropped 0.2 percent, Honda Motor Co Ltd gained 1.3 percent, and Sony Corp rose 0.7 percent. Still, the benchmark Nikkei has risen about 46 percent this year, gunning for its best yearly performance since 1972 helped by the Japanese government's massive fiscal and monetary stimulus to revive the economy.