Nikkei drifts lower as banks, exporters weigh

* Profit-taking hits Nikkei but defensives buoy

* Some pressure as dollar loses ground against yen

* 25-day moving average proving resistance

* Financials down in wake of losses by U.S. peers

By Elaine Lies

TOKYO, Oct 14 (Reuters) - Japan's Nikkei average lost 0.2 percent on Wednesday, hit by profit-taking after five days of gains, with exporters such as Canon Inc (7751.T) pressured by a stronger yen.

Bank shares such as Mizuho Financial Group (8411.T) slipped after their U.S. peers fell ahead of earnings reports from several major banks this week, with JP Morgan Chase (JPM.N) reporting on Wednesday and Goldman Sachs on Thursday. [SP500/WK] [RESF/US]

Market players said profit-taking emerged after the benchmark rose for five straight days, during which it gained 4.2 percent, though buying of so-called defensive shares kept losses in check.

"It's really hard to buy today, with many investors reluctant to try and break above the 25-day moving average -- now at around 10,140 -- especially given the yen's gains against the dollar," said Noritsugu Hirakawa, a strategist at Okasan Securities.

"We really need to see what happens on Wall Street, with investors wanting to confirm the financial earnings results before there's any incentive to buy."

The benchmark Nikkei .N225 lost 16.35 points to 10,060.21, while the broader Topix lost 0.8 percent to 894.34. The dollar slid to its weakest level in 14 months against a basket of currencies and fell below 89 yen after sell orders were triggered near 89.60-50 yen per dollar JPY= and a Japanese official told Reuters dollar weakness was likely to persist. [ID:nTKF106667]

The greenback was down 0.8 percent at 88.95 yen by late afternoon.

Canon lost 1.1 percent to 3,460 yen, while Honda Motor Co (7267.T) fell 1.8 percent to 2,760 yen and Toyota Motor Corp (7203.T) shed 1.1 percent to 3,570 yen.

TECHS AND BANKS VS DEFENSIVES

Chip equipment makers weighed on the market through much of the day after Intel's quarterly outlook and results beat expectations, but the company said it expected its 2009 capital spending to be around $4.5 billion, down from its previous expectation of around $4.7 billion. [ID:nN1315624]

Tokyo Electron (8035.T) dipped 0.5 percent to 5,740 yen, while Nikon Corp (7731.T) fell 0.7 percent to 1,724 yen and Disco Corp (6146.T) slid 1.3 percent to 5,950 yen.