Japan's Nikkei average edges down in thin trade

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By Taiga Uranaka

TOKYO, March 28 (Reuters) - Japan's Nikkei average slipped 0.1 percent in thin trading on Friday, pulled down by Honda Motor Co Ltd (7267.T: Quote, Profile, Research, Stock Buzz) and tracking overnight falls on Wall Street.

Financials fell with Japan's third-largest bank Sumitomo Mitsui Financial Group (8316.T: Quote, Profile, Research, Stock Buzz) losing 1.7 percent amid fresh concerns about the health of the U.S. financial sector.

Oil and gas field developer Inpex Holdings Inc (1605.T: Quote, Profile, Research, Stock Buzz) extended gains on a continued rally in crude prices, offsetting some of the market's overall losses.

The market was moving in a narrow range, with investors hesitant to build up large positions in either direction in the final days of the business year.

"As you can see, the market lacks direction, and investors are taking a wait-and-see attitude," said Kenichi Hirano, operating officer at Tachibana Securities.

"There are few selling since those who had to liquidate positions ahead of the end of the business year had done so last week."

The benchmark Nikkei .N225 ended the morning session down 7.08 points at 12,597.50. The broader TOPIX lost 0.1 percent to 1,225.77.