* Nikkei set for biggest weekly fall in 8 months * Drops on fading hopes for fresh U.S. stimulus * Astellas Pharma up after U.S. panel backs bladder drug By Dominic Lau TOKYO, April 6 (Reuters) - Japan's Nikkei share average fell on Friday ahead of a key U.S. jobs report, with the index heading for its worst weekly loss in eight months on fading hopes of further U.S. stimulus and fresh concerns over the euro zone. "The very optimistic view of the U.S. economy has already been priced in. We can't expect further monetary easing from the Fed," said Ryota Sakagami, chief equity research strategist at SMBC Nikko Securities. "On the other hand, we see uncertainty in the European debt crisis, and the general elections in Greece and the presidential election in France will only create further uncertainty." By the midday break, the Nikkei had dropped 0.7 percent to 9,699.28, down for the fourth-straight day, and off 3.8 percent this week. That puts it on track for its worst weekly performance since the week of August 1-5 when it shed 5.4 percent. Sakagami expected the correction to last until late April or mid-May, when Japanese companies will announce earnings guidance for the current fiscal year, though the Nikkei should hold above 9,000. Toyota Motor Corp sagged 1.3 percent, down for seven straight session, and was among the most heavily traded stocks on the main board by turnover, as investors continued to lock in sharp gains made in 2012. The stock is still up 33 percent this year. A firmer yen against the euro also weighed on exporters, with TDK Corp losing 2.7 percent and Canon Inc off 1 percent. The euro last traded at 107.50 yen after hitting a four-week low of 106.89 yen on Thursday. Tokio Marine Holdings Inc shed 1.5 percent, hurt by a downbeat note from JPMorgan, which said the insurer may be at risk of missing targets. The broader Topix index fell 0.7 percent to 826.80. LIGHT VOLUME Trading volume on the main board was light, with 41 percent of its full daily average for the past 90 days, as many markets are shut for the Easter holiday. Economists polled by Reuters expect the nonfarm payrolls report due at 1230 GMT to show the U.S. economy added 203,000 jobs in March. That would represent a fourth-straight month of solid job creation, marking the longest stretch of monthly employment gains topping 200,000 since 1999. A trader said investors can buy Nikkei options with the right to sell the index at 9,500 in April or May as a "cheap" hedge against a disappointing U.S.