Nikkei dips 0.3 pct as exporters weigh, Isuzu drops

TOKYO, July 7 (Reuters) - Japan's Nikkei average fell 0.3 percent on Tuesday, with exporters hurt by a stronger yen, while Isuzu Motors (7202.T) skidded after a report that Toyota Motor (7203.T) has decided to scrap plans to develop diesel engines with its fellow carmaker.

The benchmark Nikkei .N225 dipped 33.08 points to 9,647.79, after moving in and out of positive territory earlier. It remained below its 25-day moving average around 9,800 for a third straight day.

The broader Topix .TOPX edged down 0.4 percent to 909.13. (Reporting by Aiko Hayashi)