TOKYO, Feb 8 The Nikkei share average fell 0.35 percent on Thursday as investors sold Nip

TOKYO, Feb 8 (Reuters) The Nikkei share average fell 0.35 percent on Thursday as investors sold Nippon Yusen KK and other shipping firms after their earnings reports, outweighing earlier gains led by high-tech shares.

Investors also sold recent climbers such as property and utility stocks, as they were eager to take profits before the three-day weekend and ahead of the Bank of Japan's policy-setting meeting this month. The Tokyo market will be closed on Feb. 12 for a national holiday, and will resume trade on Tuesday.

The market has lost upward steam since corporate earnings reports showed mixed results, said Susumu Abe, a manager in the information and investment department at Mito Securities.

''The number of companies that raised their full-year forecasts was almost equal to that of companies cutting outlooks,'' he said.

The Nikkei was down 60.98 points at 17,231.34 at 0515 GMT.

The TOPIX index lost 0.80 percent to 1,714.47.

Nippon Yusen lost 8.7 percent to 895 yen after the company cut its forecast for group operating profit in the year to March 31 to 110 billion yen ($910 million) from 115 billion yen.

Mitsui O.S.K. Lines Ltd fell 4.6 percent to 1,212 yen after the shipping company left its forecast for group operating profit in the year to March unchanged at 166 billion yen.

Kawasaki Kisen Kaisha Ltd. dropped 5.0 percent to 1,036 yen, although the shipping firm raised its forecast for group operating profit in the year to March to 61 billion yen from 60 billion yen.

Shipping shares had advanced since late last year on expectations that a retreat in oil prices would reduce fuel costs of shipping firms and help them boost earnings. Investors also bought shipping shares due to their high dividend yield.

Mitsubishi Estate Co. shed 2.5 percent to 3,500 yen after the real estate developer posted on Thursday a 50 percent rise in quarterly net profit and kept its full-year forecast for 51 percent growth.

Among notable gainers, electronic parts maker Mitsumi Electric Co. Ltd. surged 14.9 percent to 3,090 yen after lifting its full-year profit forecast by 59 percent.

The electronic-parts maker on Wednesday raised its group net profit forecast for this business year on strong sales of Nintendo Co.'s Wii game console.

In 2006, Mitsumi was one of the best-performing stocks in the Nikkei 225.

($1=120.82 Yen) REUTERS CS VV1143