Nikkei edges up, Ricoh gains while Canon slides

*Nikkei edges up after seesaw trade

*Canon touches 4-mth low, fears emerge after Ricoh's purchase

*Economic uncertainty clouds earnings picture, deters trade (Adds stocks, details)

By Elaine Lies

TOKYO, Aug 28 (Reuters) - Japan's Nikkei stock average edged up 0.1 percent on Thursday in seesaw trade, with Ricoh Co Ltd (7752.T: Quote, Profile, Research, Stock Buzz) surging after it bought a U.S. distributor, a move that sent rival Canon Inc (7751.T: Quote, Profile, Research, Stock Buzz) tumbling to a four-month low.

Shares in Acom Co (8572.T: Quote, Profile, Research, Stock Buzz) soared on the news that top bank Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research, Stock Buzz) would boost its stake in the consumer lender. But growing uncertainty about the global and domestic economies weighed on banks, while defensive shares such as pharmaceuticals fared well.

Investors were put off by the increasing economic gloom, keeping a lid on volume levels that were within sight of the year's low hit on Wednesday.

"Up to now the world was watching the economic situation in the U.S., but now eyes are turning to Europe as well. The global economy is clearly slowing," said Hiroaki Osakabe, a fund manager at Chibagin Asset Management.

"It's hard to really imagine a recovery, and so it's impossible to predict what's going to happen with company earnings. This makes everybody want to avoid trading."

Shares of Canon slid 5.2 percent to 4,790 yen, its lowest close since mid-April after Ricoh announced its $1.6 billion acquisition of U.S. distributor Ikon Office Solutions IKN.N, saying the move would help it gain customers in Europe and the United States, a key market. [ID:nT32166]

Canon machines represent 60 percent of the products Ikon handles at the moment, with Ricoh machines accounting for 30 percent. But Ricoh said it aims to replace Canon products with its own printers and copiers in three to four years.

"There's no question this will hit Canon pretty hard," said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ Securities.

Ricoh, on the other hand, at one point surged more than 6 percent, though it fell back to close up 2.9 percent at 1,777 yen.

The benchmark Nikkei .N225 gained 15.29 points to 12,768.25, having moved through a tight range during the day, with profit-taking emerging close to 12,900 and the downside solid around 12,500.

The broader Topix .TOPX slipped 0.3 percent to 1,219.53.

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