* Nikkei initially lifted by higher Wall St but erases gains
* Broader Topix loses 0.2 pct
By Shinichi Saoshiro
TOKYO, Aug 4 (Reuters) - Japan's Nikkei share average erased earlier gains and edged lower on Thursday, pulled down by a bullish yen and caution before Friday's U.S. non-farm payrolls.
The Nikkei declined 0.4 percent to 16,020.15 after rising to 16,208.05 earlier in the morning session.
"The Nikkei initially took cues from overnight gains by U.S. shares and a rise in crude oil prices. But the market eventually ran out of factors to sustain the rise, with participants not inclined to build positions ahead of a key event like the U.S. jobs data release," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.
The yen remained on the front foot against the dollar, with verbal warnings from Japan's top currency diplomat having little impact.
The dollar, on the defensive this week as the prospects for a near-term U.S. rate hike faded, was down 0.4 percent at 100.89 yen.
Banking and securities sub-indexes rose on Thursday on relief over the relatively upbeat financial results of large European banks such as HSBC, ING and Societe Generale.
Oil refiners Idemitsu Kosan Co Ltd and Showa Shell Sekiyu KK fell 6.4 pct and 7 pct respectively as Idemitsu's bid to take over Showa Shell hit an obstacle.
The founding family of Idemitsu Kosan has bought a stake in Showa Shell in a bid to block Idemitsu management's takeover plan, the family's lawyer said on Wednesday.
Maruha Nichiro Corp rose 5 percent after the Nikkei reported that the Japanese seafood processor is likely to report a pretax profit of 6.5 billion yen ($64 million) in April-June, up 93 percent year-on-year and a record for the period.
Athletic equipment maker Zett Corp was up 16.7 percent, boosted by news that baseball and softball are to return at the 2020 Tokyo Olympics after being dropped from the 2012 and 2016 games.
Kubota Corp fell 2.2 percent after the agricultural machinery manufacturer revised down its net profit forecast for the year through December 2016 to 128 billion yen ($1.27 billion) from 150 billion yen as an appreciating yen and the prospect of reduced overseas sales.
The broader Topix fell 0.2 percent to 1,268.89 and the JPX-Nikkei Index 400 lost 0.25 percent to 11,407.64.
$1 = 101.0400 yen Reporting by Shinichi Saoshiro; Editing by Eric Meijer