Nikkei hits 3-week low but consumer lenders jump

* Exporters hurt by yen; Sony falls after earnings

* CIT, Citi news spark worry about financials - analysts

* Consumer lenders soar on news govt may ease lending rules

By Aiko Hayashi

TOKYO, Nov 2 (Reuters) - The Nikkei average slid 3 percent on Monday to mark its lowest point in three weeks, with exporters hit by a stronger yen and after weak U.S. consumer spending data sparked a sell-off on Wall street.

Bank shares such as Mitsubishi UFJ Financial Group (8306.T) fell after accounting expert Robert Willens said Citigroup (C.N) was likely to have a $10 billion fourth-quarter charge on its deferred tax assets, sparking worries about the sector. [ID:nN30427238]

Analysts also cited CIT Group's CIT.N bankruptcy filing on Sunday as further negative news for the market. CIT is a U.S. lender to hundreds of thousands of small and medium-sized businesses. [ID:nN01408863]

"Economic indicators are beginning to show uncertainty about the future, despite solid corporate earnings results so far," said Yutaka Miura, a senior technical analyst at Mizuho Securities.

"We have a bunch of news including CIT that is making investors nervous about the outlook for the economy as well as earnings going forward."

In moderate trade, the benchmark Nikkei .N225 shed 2.7 percent to 9,762.66 by the midday break, after falling as much as 2.98 percent to 9,736.14, its lowest since Oct. 7.

The broader Topix lost 2.1 percent to 875.66.

The S&P .SPX lost 2.8 percent on Friday as the fragility of the U.S. economic recovery was highlighted by economic reports that showed U.S. consumers cut spending in September and consumer sentiment turned gloomier this month. [ID:nN30482062]

But consumer lenders including Aiful Corp (8515.T) soared after the Nikkei business daily said on Sunday that Japan would consider reversing its tightening of regulations on moneylenders to help self-employed business owners following the financial crisis. [ID:nT83915] [ID:nT79045]

EXPORTERS HIT, CONSUMER LENDERS JUMP

Among exporters, Kyocera Corp (6971.T) sank 4.1 percent to 7,430 yen and Canon Inc (7751.T) lost 4 percent to 3,390 yen. Honda Motor Co (7267.T) slid 2.8 percent to 2,800 yen.

The yen JPY= rose to two-week highs against the dollar around 89.20 yen in early Asia trade. Investors fret about a stronger yen as it eats into exporters' profits when they are repatriated.