* 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)
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