* Nikkei futures and options likely settled at 20,473.83 - traders
* Toshiba falls to 2-week low on report it will likely admit internal controls were inadequate
By Ayai Tomisawa
TOKYO, June 12 (Reuters) - Japanese stocks were choppy in early trade on Friday, as investors were cautious after another turn for the worse in Greece's debt talks, while Toshiba Corp fell on a report that it will likely admit internal controls were inadequate.
The Nikkei share average .N225 was up 0.06 percent to 20,395.3 in mid-morning trade after nudging in and out of negative territory. The index soared 1.7 percent on Thursday, the biggest percentage gain in four months.
Investors were wary as Greece showed no sign of reaching a deal with its creditors. Making matters worse, the International Monetary Fund decided to leave negotiations in Brussels because of major differences with Athens. ID:nL5N0YX006
At the market open, Nikkei futures and options contracts expiring in June settled at the price of 20,473.83, according to traders. The closely watched settlement price, known in Japan as the special quotation, or "SQ", is calculated from the opening prices of the 225 shares in the Nikkei average on the second Friday of the month.
Market analysts said that investors may stay on the sidelines ahead of domestic events such as shareholders' meetings, which are scheduled later this month.
In the near term, the focus will turn to the U.S. Federal Reserve's Federal Open Market Committee (FOMC) which holds a two-day meeting on interest rates next week.
"Foreign investors are taking a breather now after buying up Japanese shares last month," said Hikaru Sato, a senior technical analyst at Daiwa Securities. "The market may stay directionless until those events are over."
Toshiba 6502.T fell as much as 2.1 percent to a two-week low after the Nikkei business daily reported that the company is expected to amend past reports to ensure accurate accounting. ID:nWNAS00VQF ID:nL3N0YK3B6
"Short-term investors are taking profits from a recent recovery in the stock price after its accounting scandals shocked them a month ago," said Takatoshi Itoshima, chief portfolio manager at Commons Asset Management. "The stock's reputation was tarnished already, so such news report can spark imagination about more unknown risks."
Exporters were mixed, with Toyota Motor Corp 7203.T rising 0.6 percent, Honda Motor Co 7267.T falling 1.4 percent and Panasonic Corp 6752.T flat.
The broader Topix .TOPX added 0.1 percent to 1,650.28 and the JPX-Nikkei Index 400 .JPXNK400 rose 0.1 percent to 14,893.46.
(Editing by Shri Navaratnam)