Nikkei down 0.2 pct as Casio drags, but KDDI up

(Updates to midsession)

By Aiko Hayashi

TOKYO, Oct 5 (Reuters) - The Nikkei average eased 0.2 percent on Friday, dragged lower by Casio Computer Co Ltd (6952.T: Quote, Profile, Research, Stock Buzz) after it cut its full-year forecast, but received some support from KDDI Corp (9433.T: Quote, Profile, Research, Stock Buzz), which jumped after a brokerage upgraded the stock and put it on its conviction buy list.

Shares of Simplex Investments Advisors Inc 8942.T soared 10.8 percent to 144,000 yen on the Tokyo exchange's Mothers section for start-ups. Sources told Reuters a major shareholder in the property investment company had put his 29 percent stake up for sale, a move that could lead to a tender offer for the rest of the company. [ID:nT185376]

"Investors are finding it tough to aggressively buy stocks in light of downward revisions of corporate earnings," said Yutaka Miura, deputy manager of the equity information department at Shinko Securities.

"But the market will likely trade in a narrow range as investors wait for U.S. jobs data. Japanese stocks have not been rising on domestic factors but on U.S. stocks."

Investors are waiting for the U.S. jobs report on Friday as that could shed light on the outlook for interest rates there.

The benchmark Nikkei .N225 ended the morning session down 28.70 points at 17,063.79. The broader TOPIX index inched higher 0.1 percent or 1.29 points to 1,656.89.

Trade volume was low, with 721 million shares changing hands on the Tokyo exchange's first section, compared with last week's morning average of 876.2 million.