Nikkei hits 1-mth closing low, eyes on jobs data

* Exporters drag as investors take profits; banks up

* Hedge funds selling weighs, eyes on US jobs data -analysts

* After close, Toyota slashes loss forecast [ID:nT70357]

By Aiko Hayashi

TOKYO, Nov 5 (Reuters) - Japan's Nikkei share average fell 1.3 percent on Thursday to its lowest close in a month, with Sony Corp (6758.T) and other exporters slipping as investors locked in profits on caution ahead of U.S. jobs data.

Market players said selling by hedge funds also weighed on the market.

Sanyo Electric Co (6764.T) lost a fifth of its value after Panasonic Corp (6752.T) launched a bid for shares in the world's largest rechargeable battery maker. [ID:nT182667]

Although Panasonic's offer was unchanged from terms announced a year ago, market players said there had been some speculation it could revise up its offer price closer to Sanyo's trading price.

"Investors were pushing the market lower, preparing for more selling by investors such as hedge funds in case U.S. jobs data raises a disturbance," said Tsuyoshi Segawa, an equity strategist at Mizuho Securities.

"Jobs data has been a mixed bag, but at the same time, the speed of worsening in the situation is certainly slowing."

In light trade, the benchmark Nikkei .N225 shed 126.87 points to 9,717.44, its lowest finish since Oct. 6.

The broader Topix slipped 0.7 percent to 874.96.

The private-sector jobs report by ADP Employers Services, often seen as foreshadowing U.S. government figures, showed companies cut 203,000 jobs in October, fewer than the revised 227,000 in September and the lowest since July 2008. [ID:nN04349022]

Analysts polled by Reuters expect Friday's employment report to show that U.S. payrolls shrank by 175,000 and the unemployment rate hit a new 26-year-high of 9.9 percent in October. [ID:nN03495528]

On Wednesday, the Federal Reserve reiterated its intent to keep interest rates low, in line with expectations. Though Wall Street rallied in response it soon lost steam, with investors turning their eyes to jobs data due out on Friday.

The dollar fell 0.3 percent to around 90.50 yen JPY= on Thursday, pressured by the Federal Reserve reiterating its commitment on low rates.