Nikkei slips 0.9 pct as banks fall, valuations weigh

(Updates to midday)

TOKYO, May 8 (Reuters) - Japan's Nikkei average slipped 0.9 percent on Thursday, dragged down by financial shares such as Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research, Stock Buzz) and other recent gainers as investors began to see them as expensive, while a tumble on Wall Street dampened investor confidence.

The benchmark Nikkei average .N225 ended the morning session down 123.54 points at 13,978.94, after booking its highest close since Jan. 11 on Wednesday.

The broader TOPIX index shed 1.1 percent or 15.56 points to 1,377.72. (Reporting by Aiko Hayashi)