Japan shares hold near 7-week low

By Lincoln Feast

SINGAPORE (Reuters) - Uncertainty on earnings and economic recovery prospects kept Japanese shares hobbled near seven-week lows on Friday, while prices for commodities such as oil and copper looked to build a floor after recent declines.

The dollar held steady in Asian trade after a steep fall following data on Thursday showing fewer than expected U.S. initial jobless claims, and the yen was on the back foot after retreating from a five-month high versus the greenback earlier this week.

With the summer holiday season kicking off in the northern hemisphere and second-quarter earnings season also beginning, market and fund flows data suggested many investors were heading to the sidelines, fund tracker EPFR Global said.

Japan's Nikkei average .N225 was little changed in morning trade, having fallen for the seventh straight session in a row on Thursday.

"Bargain hunters are tip-toeing in after the market sank rapidly over a short period of time, with relief coming from the yen's stalled advance," said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments in Tokyo.

"But from a broader perspective the market is still in an adjustment phase, with participants wanting to see how corporate earnings pan out first."

Japan's weak domestic demand and reliance on export markets in China, the United States and Europe has this year seen the Nikkei underperform MSCI's measure of stocks elsewhere in the Asia-Pacific region .MIAPJ0000PUS, which was also flat on Friday.

The Nikkei is up a modest 4.8 percent year-to-date, compared with a 27 percent rise in the regional index and a whopping 70 percent in China's Shanghai Composite index .SSEC.