Nikkei slips 0.4 pct; metals, economic worries weigh

* Nikkei drifts ahead of JAL, megabank earnings

* Profit-taking in broad range of shares

* Key level for Nikkei is 9,500, then 9,000 - analysts

* Nikkei has third consecutive negative week

By Elaine Lies

TOKYO, Nov 13 (Reuters) - Japan's Nikkei stock average lost 0.4 percent on Friday, weighed down by selling of smelters after non-ferrous metals prices fell, with concerns about consumer spending and Wall Street's performance leading to broad selling.

But buying of a range of defensive shares such as seafood company Nippon Suisan (1332.T), which surged after a brokerage upgrade, kept the fall in check. A brokerage upgrade also boosted Sharp Corp (6753.T)

Activity waned as attention turned to struggling Japan Airlines Corp (9205.T) and megabanks Mizuho Financial Group (8411.T) and Sumitomo Mitsui Financial Group (8316.T), all of which announce results after the close.

"I think a lot of investors want to see what New York stocks will do today after yesterday's slip, since there's a sense that New York may have peaked out," said Yutaka Miura, senior technical analyst at Mizuho Securities.

"This is especially true because this week's gains were made in very thin trade, which means that once it starts heading down, its slide may be slow but it will be steady, putting further pressure on Japanese shares."

U.S. stocks fell on Thursday as a stronger dollar weighed on commodity-linked shares and a guarded outlook from Wal-Mart Stores Inc (WMT.N) led to worries about consumer spending. [.N]

The Nikkei lost 0.2 percent on the week for its third straight week of losses, the first such negative stretch since the three weeks end Oct. 2. In thin trade, it lost 34.18 points on the day to close at 9,770.31.

The broader Topix fell 0.1 percent to 866.80.

Other analysts said that on top of selling by Japanese institutional investors, foreign investors appear to have shifted their stance slightly on Japanese stocks from neutral to selling.

"Earnings are mostly over and though many were strong, they were mainly factored in and didn't lead to buying, while the forecasts were fairly cautious," said Norihiro Fujito, general manager at Mitsubishi UFJ Securities.

"There's worry about bond issuance and growth here is really lagging. There's a lot of funds going to places like China, India and Indonesia."