Nikkei slips 1.8 pct; TDK drags, financial worries weigh

(Updates to midsession)

TOKYO, March 27 (Reuters) - Japan's Nikkei average slipped 1.8 percent on Thursday, dragged lower by TDK Corp (6762.T: Quote, Profile, Research, Stock Buzz) after a newspaper reported the company would likely miss its profit forecast due to a stronger yen, while financials fell on worries about the outlook for bank profits.

Exporters such as Toyota Motor Co (7203.T: Quote, Profile, Research, Stock Buzz) lost ground on a firmer yen and concerns about a recession in the United States, a key destination for Asian exports.

The benchmark Nikkei average .N225 was down 225.65 points at 12,480.98, after gaining nearly 8 percent in the last six days.

The broader TOPIX shed 1.4 percent or 17.81 points to 1,219.74. (Reporting by Aiko Hayashi)