Japan's Nikkei dips 0.4 pct, Honda weighs

(Updates to midmorning)

TOKYO, March 28 (Reuters) - Japan's Nikkei average fell 0.4 percent on Friday, pulled down by Honda Motor Co Ltd (7267.T), tracking overnight falls on Wall Street.

Oil and gas field developer Inpex Holdings Inc (1605.T) extended gains on a continued rally in crude prices.

In a thin-trade session, 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.

"There is little to move the market and forex is relatively calm with the dollar at mid-99 yen," said Yoshihiro Ito, fund manager at Okasan Capital Management.

"Investors are waiting to see how much profit decline Japanese companies forecast for the next business year and where the dollar's slide stops."

As of 0123 GMT, the benchmark Nikkei .N225 was down 51.73 points at 12,552.85. The broader TOPIX lost 0.55 percent to 1,219.70.

Honda Motor fell 1.8 percent to 2,930 yen, among the top drags on the Nikkei.

Inpex gained 1.8 percent to 1.15 million yen.

Financials fell with Japan's third-largest bank Sumitomo Mitsui Financial Group (8316.T) losing 2.2 percent to 673,000 yen.

Nippon Yusen KK (9101.T) extended its recent gains, up 0.6 percent to 943 yen. In the previous session, Japan's biggest shipping company said it aimed for a net profit of 145 billion yen in the year to March 2011 by expanding the fleet and distribution networks, up an estimated 20 percent from the current business year.

Rival shippers also rose, with Kawasaki Kisen Kaisha Ltd (9107.T) up 1.1 percent to 993 yen and Mitsui OSK Lines Ltd (9104.T) climbing 1.2 percent to 1,226 yen. (Reporting by Taiga Uranaka; editing by Gary Crosse)