Japan's Nikkei average edges down in thin trade

(Updates to midsession)

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) and tracking overnight falls on Wall Street.

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

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

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. (Reporting by Taiga Uranaka)