Nikkei slips as Sony falls, Fujifilm gains

(Updates to midmorning)

TOKYO, Jan 31 (Reuters) - The Nikkei share average slipped 0.22 percent on Wednesday, as Sony Corp. (6758.T) declined after its increased profit forecast still fell short of investors expectations.

But shares of Fujifilm Holdings Corp. (4901.T) climbed more than 4 percent after the film manufacturer posted a surprise 70 percent jump in quarterly profit and raised its annual forecast to above the market consensus. [ID:nT208449]

Sony fell 2 percent to 5,520 yen. The electronics firm posted a 15 percent fall in quarterly operating profit on Tuesday, but it raised its annual outlook. [ID:nT134588]

But the upward revision wasn't enough to satisfy investors who have pushed the stock up some 24 percent since the start of last month.

"Sony has risen steadily as of late, so in that sense investors have had strong expectations. The latest results may not be a disappointment, but they aren't a trigger for further buying," said Renji Motohashi, general manager at the equity department of Shinko Securities.

The Nikkei .N225 was down 57.98 points at 17,432.21 as of 0100 GMT.

The broader TOPIX index was down 0.45 percent at 1,723.76.

Fujifilm gained 4.6 percent to 5,010 yen. The company's stronger-than-expected results benefited from rigorous cost cuts, a weaker yen and steady sales of films used in flat panels and colour copiers. [ID:nT208449]

Shares of Nikko Cordial Corp. 8603.T were untraded, swamped with sell orders at 1,184 yen, down 14.5 percent from Tuesday's closing price.

A report issued by the brokerage's in-house investigation panel showed that the top executives at Nikko Cordial and its subsidiary Nikko Principal Investments Japan Ltd. were involved in manipulating financial earnings to pad group profits.