Nikkei nearly flat as TDK up but banks fall

TOKYO, Aug 3 (Reuters) Japan's Nikkei average ended almost flat on Friday as cellphone makers such as TDK Corp. rose following industry leader Nokia's upbeat earnings results.

But bank shares extended gains on renewed concern about the fallout from the U.S. subprime loan problems after news that American Home Mortgage Investment Corp plans to close most operations on Friday, becoming one of the biggest casualties of the U.S. housing downturn.

The Nikkei ended the day down 0.03 percent or 4.25 points at 16,979.86.

The broader TOPIX index added 0.19 percent to 1,672.54.

REUTERS SBA GC1226