(Fixes code for Tokyo Electron in paragraph 10 to ... )
* Nikkei down 0.4 pct, hovers at options settlement level
* Aeon up after earnings, retailers in focus -fund manager
* Semiconductors fall on brokerage downgrades following quake
* Toyota down; source says may delay this year's earnings f'cast
By Antoni Slodkowski
TOKYO, April 15 (Reuters) - Japan's Nikkei stock average edged lower on Friday as chip stocks fell after ratings downgrades, and the benchmark looked set to round off a week of thin, choppy trade stuck in a tight range.
Disappointing U.S. jobs data, concerns of further Chinese tightening, and the re-emergence of Europe's debt woes have also weakened sentiment towards equities. [ID:nN14146589]
Tokyo stocks have regained around two-thirds of their losses suffered after the March 11 earthquake. But trade has turned more volatile and thinned out ahead of earnings reports that may pose more questions than give answers, as many firms will likely not give forecasts for this business year.
One such company may be Toyota Motor Corp , which fell 0.9 percent to 3,240 yen. A source on Friday confirmed earlier reports that the automaker is considering delaying its announcement of this year's earnings forecasts until after it releases its fourth-quarter and full-year results on May 11.[ID:nL3E7FF03W]
"Foreigners have moved to the sidelines and are waiting for earnings in order to start trading more aggressively, while Japanese institutional players sell whenever the market edges a bit higher," said Tetsuro Ii, chief executive officer of Commons Asset Management.
By the midday break the benchmark Nikkei average was down 0.4 percent at 9,612.23 -- the same level at which April options prices had settled last week, at 9,612.51. Support is seen at the Nikkei's 25-day moving average at 9,533.69, analysts said.
The broader Topix shed 0.3 percent to 844.03.
Volume stayed depressed with 1.1 billion shares changing hands on the Tokyo Stock Exchange's first section, suggesting Friday's total will come in below the last week's daily average of 2.6 billion shares.
While the Nikkei remains nearly 8 percent below its pre-quake levels, the MSCI index of Asian stocks outside Japan has gained around 8 percent since the disaster.
In a post-quake review of semiconductor stocks, Bank of America Merrill Lynch downgraded Tokyo Electron and Disco Corp to "underperform" from "buy".
The brokerage slashed Tokyo Electron's target price to 4,000 yen from 6,000 yen, citing expectations for weaker demand for semiconductors and the negative impact of the March 11 quake on supply chains.
Shares of Tokyo Electron fell 1.2 percent to 4,455 yen while Disco slid 3.1 percent to 5,380 yen.
RETAILERS IN FOCUS
"The index moves are rather lukewarm, but people who can move fast in and out of the market are making a lot of money on stocks with news about them," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management, adding that the market is dominated by short-term individual investors.
Japanese investors looked for clues about profit estimates for the next business year in earnings results announced by retailers who kicked off the cautiously awaited first post-quake earnings season last week.
Aeon Co , Japan's second-biggest retailer, climbed 2.5 percent to 949 yen after it forecast on Thursday a 1.5 percent rise in operating profit this financial year, with demand for basic goods set to limit the impact of a post-quake decline in overall consumer spending. [ID:nL3E7FE0X4]
"With so many uncertain factors ahead of earnings season, people look to these companies and try prepare for the big players announcing at the end of the month," said Commons' Ii.
Sumitomo Metal Industries , Japan's third-biggest steelmaker, dropped 1.1 percent to 173 yen after saying on Thursday in would take a 60 billion yen ($715 million) charge for the year that ended on March 31 due to damage resulting from last month's devastating earthquake and tsunami. [ID:nL3E7FE16J]
By the midday break, declining shares had outpaced advancing ones by 772 to 686. (Additional reporting by Antoni Slodkowski; Editing by Chris Gallagher)