Japan's Nikkei falls 0.7 pct as investors cash out

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By Taiga Uranaka

TOKYO, April 4 (Reuters) - Japan's Nikkei stock average fell 0.7 percent on Friday as investors locked in the market's three-day gain ahead of closely watched U.S. jobs data.

Honda Motor Co Ltd (7267.T: Quote, Profile, Research, Stock Buzz) and Toyota Motor Co (7203.T: Quote, Profile, Research, Stock Buzz) extended losses after Goldman Sachs joined other brokerages to cut its rating on the sector.

"We are seeing profit-taking after the three-day winning streak and ahead of jobs data," said Harushige Kobayashi, head of the research department at Maruwa Securities.

The U.S. employment report for March is due later in the day, with economists forecasting a cut of 60,000 jobs.

The Nikkei had gained nearly 7 percent since Tuesday as fears of the credit crisis spinning out of control eased following a successful capital boost by Lehman Brothers LEH.N.

"With concerns about a credit crunch having been alleviated to some degree, recently battered shares such as financials and property firms are regaining ground," said Hiroaki Osakabe, fund manager at Chibagin Asset Management.

The benchmark Nikkei .N225 ended the morning down 90.92 points at 13,298.98. The broader TOPIX fell 0.5 percent to 1,293.79.