TOKYO, July 3 (Reuters) - Japan's Nikkei share average inched up on Friday, paring earlier losses thanks to gains by banking sector shares and other large-caps, although caution ahead of a weekend Greek national vote limited overall action.
Banking stocks rose across the board, lifted by a report that Sumitomo Mitsui Financial Group will create targets this fall to reduce cross-shareholdings.
The Nikkei share average rose 0.1 percent to 20,539.79 after losing as much as 0.4 percent.
The broader Topix gained 0.2 percent to 1,652.09. The JPX-Nikkei Index 400 added 0.3 percent to 14,925.02.
(Reporting by Shinichi Saoshiro; Editing by Kim Coghill)