Nikkei slips as exporters sold, eyes on jobs data

                                
 * Exporters drag on Nikkei as investors take profits
                                
 * Nissan climbs after switching guidance to profit
                                
 * Eyes on company results, U.S. jobs data
                                
 By Elaine Lies
                                
 TOKYO, Nov 5 (Reuters) - Japan's Nikkei stock average lost
1.2 percent on Thursday with Canon Inc <7751.T> and other
exporters slipping as investors, prompted by a slightly stronger
yen, locked in profits ahead of U.S. jobs data.
                                
 Sanyo Electric Co <6764.T> lost a fifth of its value after
Panasonic Corp <6752.T> launched a tender offer for shares in the
world's largest rechargeable battery maker. [ID:nT182667]
                                
 Although Panasonic's offer was unchanged from terms announced
a year ago, market players said there had been some speculation
among some market players it could revise up its offer price
closer to Sanyo's trading price.
                                
 But Nissan Motor Co <7201.T> rose after Japan's third-biggest
automaker revised its annual outlook to a profit from a loss as
soaring sales in China helped drive quarterly earnings beyond
market expectations. [ID:nT127974]
                                
 The Federal Reserve reiterated its intent to keep interest
rates low on Wednesday, in line with expectations. Though Wall
Street rallied in response it soon lost steam, with investors
turning their eyes to jobs data due out on Friday.
                                
 "A lot of investors are likely to be staying on the sidelines
ahead of the jobs data, given that the September figures were
worse than expected, and this is may keep stocks weak until
then," said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ
Securities.
                                
 The benchmark Nikkei <.N225> lost 113.63 points to 9,730.68
and appeared headed for its lowest close in a month, while the
broader Topix <.TOPX> shed 0.7 percent to 874.78.
                                
 The private-sector jobs report by ADP Employers Services,
often seen as foreshadowing the government figures, showed
companies cut 203,000 jobs in October, fewer than the revised
227,000 in September and the lowest since July 2008.
[ID:nN04349022]
                                
 Analysts polled by Reuters expect Friday's employment report
to show that U.S. payrolls shrank by 175,000 and the unemployment
rate hit a new 26-year-high of 9.9 percent in October.
                                
 Market players said investors were also likely to be less
active as they waited for earnings of companies such as Toyota
Motor Corp <7203.T>, which will announce its results after the
market closes on Thursday.
                                
 "The yen has gained slightly on the dollar, and this has
prompted profit-taking among short-term investors, especially
among shares that have already announced results," said Hiroaki
Osakabe, a fund manager at Chibagin Asset Management.
                                
 The dollar lost 0.2 percent to 90.46 yen <JPY=>, pressured by
the Federal Reserve reiterating its commitment on low rates.
                                
 PROFIT-TAKING HITS
                                
 Sanyo dropped 19.9 percent to 173 yen but was still above
Panasonic's offer of 131 yen.
                                
 Exporters slipped on profit-taking as a result, with Canon
losing 1.5 percent to 3,350 yen, Sony Corp <6758.T> down 2.1
percent to 2,550 yen, and Honda Motor Co <7267.T> losing 2.8
percent to 2,780 yen.
                                
 Astellas Pharma Inc <4503.T>, which is due to announce
results after the close, fell 2.4 percent to 3,310 yen.
                                
 But this was countered by gains in a broad range of shares,
particularly those with robust results or upward revisions in
their forecasts.
                                
 Nissan rose 1.1 percent to 668 yen after the company, owned
44 percent by Renault SA <RENA.PA>, said it now expects an
operating profit of 120 billion yen ($1.3 billion) in the year to
March, instead of the 100 billion yen loss it had forecast
previously.
                                
 Sumitomo Heavy Industries <6302.T> rose 4.1 percent to 433
yen after it raised its full-year operating profit forecast by a
third, helped by a smaller-than-expected rise in steel costs and
an easing of product price falls.
                                
 Oil and gas field developer Inpex <1605.T> climbed 4.9
percent to 793,000 yen after lifting its annual recurring profit
forecast by 26 percent to 372 billion yen, saying oil prices were
moving higher than expected.
                                
 Trade picked up slightly, with 983 million shares changing
hands compared with last week's morning average of 924 million.
                                
 Declining stocks outnumbered advancing ones by more than 3 to
1.
 (Reporting by Elaine Lies; Editing by Edwina Gibbs)