Japan's Nikkei falls 1.2 pct on US recession fears

(Updates to midmorning)

TOKYO, March 10 (Reuters) - Japan's Nikkei share average fell 1.2 percent on Monday, led lower by exporters like Sony Corp (6758.T: Quote, Profile, Research, Stock Buzz) after bleak U.S. jobs data added to fears that the world's largest economy is already in recession.

Sapporo Holdings Ltd (2501.T: Quote, Profile, Research, Stock Buzz) jumped after U.S. fund Steel Partners issued a new proposal to the brewer, seeking a smaller stake and offering a higher price per share.

The market mood, soured by the weak U.S. data last week, was somewhat supported by much stronger-than-expected Japanese machinery orders figures that were released before the open.

"Machinery orders were a surprise," said Noritsugu Hirakawa, strategist at Okasan Securities. "They are usually not so reliable since they are very volatile, but they far exceeded forecasts this time, giving support to the market."

Japan's core private-sector machinery orders, a key gauge of corporate capital spending, rose 19.6 percent in January from the previous month, government data showed on Monday. [JPMORD=ECI]

That compared with economists' consensus forecast for a 2.9 percent rise.

Still, Hirakawa and others said the market remained under pressure, with the yen's recent sharp gains against the dollar raising concerns about Japan's export-dependent economy.

As of 0106 GMT, the benchmark Nikkei .N225 was down 1.2 percent at 12,634.79. The broader TOPIX index shed 1.2 percent to 1,232.26.