Nikkei falls 0.8 pct on yen, U.S. auto bailout eyed

* Nikkei falls 0.8 pct after gaining 9 pct in past 3 days

* Firmer yen, uncertainty over US auto bailout weigh on market

* Nikkei holds above its 25-day moving average (Adds stocks, details)

By Aiko Hayashi

TOKYO, Dec 11 (Reuters) - Japan's Nikkei average slipped 0.8 percent on Thursday, losing some gains made this week as the yen rose against other currencies and doubts emerged over whether a bailout plan for U.S. automakers will be quickly approved.

But some big stocks bucked the trend, with Sumitomo Mitsui Financial Group climbing after a report that it would raise $7.6 billion in capital, much more than earlier plans, while Japan Tobacco Inc jumped on a report that the tobacco tax would not be hiked.

Market analysts said investors locked in profits after the the benchmark Nikkei climbed 9.4 percent over the past three days, and sentiment was weak as traders kept a close eye on currency moves and the fate of U.S. automakers.

"The prospects for corporate earnings are dismal, and investors are in no position to keep buying stocks," said Kenichi Hirano, operating officer at Tachibana Securities.

"Charts seem to indicate the market might have hit a bottom, but I think it's still too premature to say it's completely bottomed out."

The benchmark Nikkei fell 68.97 points to 8,591.27, although it was still above its 25-day moving average. It gained more than 3 percent on Wednesday to book its highest close since Nov. 12.

The broader Topix inched up 0.2 percent to 836.53.

"Investors also want see how the U.S. auto industry bailout pans out, with approval by the Senate looking a bit uncertain," said Yutaka Miura, a senior technical analyst at Shinko Securities.

U.S. stocks rose in choppy trade on Wednesday, with the Dow Jones industrial average ending up 0.8 percent.

The dollar fell 0.2 percent to 92.60 yen from late U.S. trading. Investors fret over a stronger yen as it curbs Japanese exporters' overseas profits when they are repatriated.

U.S. lawmakers opened debate on Wednesday on legislation to bail out U.S. auto companies. Following debate, a vote on passage in the House of Representatives was expected later in the evening.

But hopes evaporated for quick action by the Senate where Republicans, some of whose votes would be necessary to ensure passage, threatened procedural moves to slow or even block the effort to authorise up to $14 billion in bridge loans.

RECENT GAINERS FALL

Advantest, the world's biggest maker of semiconductor testers, lost 4.1 percent to 1,215 yen and Tokyo Electron fell 1.5 percent to 2,675 yen. Office equipment and digital camera maker Canon Inc shed 2.5 percent to 2,700 yen.

Sumitomo Mitsui Financial Group jumped 5.1 percent to 328,000 yen. Sources close to the matter said the Japan's third-biggest bank plans to raise $7.6 billion in capital by issuing preferred securities.

Japan Tobacco Inc gained 2.9 percent to 317,000 yen after the Asahi Shimbun newspaper said the government has decided not to raise the tobacco tax, which had been touted as one way to increase government revenue to fund social welfare spending.

Energy-linked shares such as trading firms including Mitsubishi Corp gained after oil prices oil rose more than 3 percent to above $43 a barrel on Wednesday.

Trading houses are major dealers in energy and have stakes in oil and gas projects.

Mitsubishi, Japan's largest trading house, shot up 7.8 percent to 1,240 yen and Mitsui & Co advanced 6.2 percent to 845 yen.

Trade was active on the Tokyo exchange's first section, with 1 billion shares changing hands, compared with last week's morning average of 791 million.

Declining shares led advancing ones by 930 to 636. (Reporting by Aiko Hayashi; Editing by Edwina Gibbs)