Japanese stocks are cautious ahead of Fed Powell's remarks

* Nikkei down 0.15%, Topix loses 0.23%

* The drop in machine tool orders is weighing on machine manufacturers

* Yoshinoya soar after posting a net profit for March-May

By Ayai Tomisawa and Shinichi Saoshiro

TOKYO, July 10 (Reuters) – Japanese Nikkei lost ground on Wednesday in a narrow range as investors waited for key testimony on the US economy from Federal Reserve Chairman Jerome Powell.

The average Nikkei shares closed the day down 0.15% to 21,533.48.

The markets are preparing for Powell's comments, in the two days of testimony before the US Congress that will begin later Wednesday, in which he could either support or confuse the expectations of easing US policy.

Global equities had moved higher earlier this month on the prospect of easing the Fed's monetary policy. But markets have recently lost their momentum, and the prospect of aggressive easing faded after a stronger than expected US jobs report.

"Investors are nervous waiting to know, based on Powell's comments, whether the Fed will continue to lower rates or not," said Yutaka Miura, Senior Technical Analyst at Mizuho Securities.

The Japan Machine Tool Manufacturers' Association said machine tool orders for the month of June had dropped 38 percent to 98.8 billion yen ($ 907.25 million), down for the ninth consecutive month. Fanuc Corp slipped 2.1% and Yaskawa Electric fell 1.5%, while Keyence Corp lost 0.7%.

Chiba Bank rose 3.8 percent after the lender and Bank of Yokohama announced their intention to bond.

Concordia Financial Group, the parent company of the Yokohama Bank, gained 1.2%.

Japan Post Insurance Co lost 5.1% after receiving information that it charged its customers double life insurance premiums.

Yoshinoya Holdings, which operates fast food restaurants, is up 8.8% after posting a net profit of 1.097 billion yen in March-May, compared with a net loss of 388 million yen the previous year .

The broader Topix fell 0.23% to 1,571.32.

Falling stocks outnumbered the winners (1,297-764) ($ 1 = 108.9000 yen) (edited by Jacqueline Wong)