Japanese stocks lower after data, steel rises

(Updates to midsession)

TOKYO, Sept 3 (Reuters) - Tokyo stocks edged down on Monday morning after the release of data showing companies reduced spending on plant and equipment more than expected, but the downside was firm after Wall Street gains on Friday and a rise in shares of steel firms such as Nippon Steel Corp (5401.T: Quote, Profile, Research, Stock Buzz).

Gains were capped by lingering concern about the U.S. economy, with investors moving to lock in profits on shares that had gained strongly on Friday.

The Nikkei .N225 ended the morning session down 0.7 percent, or 111.04 points at 16,458.05, while the broader TOPIX index slipped by 0.5 percent or 7.99 points to 1,600.26.