* Nikkei slips on profit-taking after bounce on Thursday
* Nerves before U.S. jobs data weigh on market
* Konica Minolta tumbles after earnings, Pioneer falls
* Eyes on U.S. jobs data due later in the day
By Aiko Hayashi
TOKYO, Aug 7 (Reuters) - Japan's Nikkei average fell 1.2 percent on Friday as automakers such as Honda Motor Co ran out of steam after a rally, with investors turning cautious ahead of crucial U.S. jobs data.
Without other convincing market-moving news, earnings results took centre stage and investors punished shares of companies whose results have disappointed the market.
Konica Minolta Holdings tumbled 10 percent after the company said it swung into the red in the first quarter, prompting Nomura Securities to cut its rating to "neutral" from "buy" and lowered its target price.
"Most positive news has been already factored into the market after the earnings season in the United States and Japan mostly ran its course," said Takahiko Murai, general manager of equities at Nozomi Securities.
"Now, doubts about the sustainability of generally solid earnings remain as many companies reported improvement in earnings due to cost cuts and not because of improvement in sales. The market is likely to face profit-taking for a while."
The benchmark Nikkei shed 119.44 points to 10,268.65. It hit a 10-month closing high of 10,388.09 on Thursday.
The broader Topix slipped 1.4 percent to 944.31.
U.S. stocks fell on Thursday on investor caution ahead of the jobs data.
The U.S. economy is expected to have lost 320,000 nonfarm payroll jobs in July, a hefty number but still an improvement over last month's drop of 467,000, while the unemployment rate is expected to have risen to 9.6 percent.
Analysts said that while expectations are not as high as they were last month, when the figures were an unhappy surprise that sent markets tumbling, some weak U.S. economic data this week has cooled investor optimism about the speed of economic recovery.
The U.S. service sector contracted in July at a faster pace than in June, with the Institute for Supply Management's services index falling to 46.4 last month from 47.0 in June -- below a median forecast for a rise to 48.
"Part of the problem with last month's jobs data was that people were expecting too much, but I think this time they're a bit more realistic," said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ Securities.
"Even if the figures aren't that good, the market's prepared to an extent. Once the data's out we can move on."
KONICA MINOLTA, PIONEER LOSE FOOTING
The Nikkei is likely to drift in a narrow range around 10,300 for the next few weeks, with attention shifting to macroeconomic indicators and Japan's Aug. 30 general election, but longer range targets remain the psychologically important 10,500 and then 10,800 -- the Nikkei's level last October.
Carmakers and related firms lost ground on Friday after Thursday's bounce, when they rose on hopes the U.S. "cash for clunkers" sales incentive would be extended.
The U.S. Senate approved a $2 billion extension of the programme during morning trading in Tokyo, with U.S. President Barack Obama expected to sign it quickly.
But Honda fell 2.3 percent to 3,040 yen and Toyota Motor shed 2.7 percent to 4,020 yen. Tyre maker Bridgestone Corp, which announces earnings after the close on Friday, dropped 1 percent to 1,676 yen.
Investors sold shares of companies with disappointing results.
For the three months to June, Konica Minolta recorded an operating loss of 589 million yen, compared with a 24.5 billion yen profit a year earlier. The stock plunged 10.1 percent to 891 yen.
"Results for 10/3 (the year to March 2010) Q1 revealed a much greater downturn for color copiers than we had previously anticipated," Nomura's Japanese equity research analyst wrote in a client note.
Pioneer Corp lost 5.7 percent to 266 yen after the consumer electronics maker reported a quarterly loss due to sluggish car sales and a stronger yen and stuck to its outlook for a sixth straight year in the red.
Kubota Corp sank 7 percent to 758 yen after the machinery maker reported a 70 percent drop in quarterly operating profit, citing slow demand for farm equipment and a stronger yen.
But Mitsubishi Rayon climbed 2.7 percent to 265 yen after the Nikkei business daily reported the company plans to set up a joint venture with Saudi Basic Industries Corp (Sabic) to produce material used for acrylic glass in Saudi Arabia. (Additional reporting by Elaine Lies; Editing by Chris Gallagher)