Japan stocks set to halt winning run in thin trade

(Adds comments and stocks)

By Aiko Hayashi

TOKYO, Dec 27 (Reuters) - Japanese stocks were set to snap a four-session winning streak on Thursday as investors locked in profits in recent gainers such as Mitsui Fudosan Co Ltd (8801.T: Quote, Profile, Research, Stock Buzz) and other property firms in holiday-thinned trade after a flat finish on Wall Street.

One bright spot was Canon Inc (7751.T: Quote, Profile, Research, Stock Buzz), which gained despite a fall in the overall market after hiking its dividend outlook.

The benchmark Nikkei average .N225 appears headed to end the year down nearly 10 percent, the first annual fall in five years, as Japanese stocks struggle in the shadow of booming markets and vibrant economies elsewhere in Asia.

"Trade is very thin and that's why profit-taking is having quite a bit of an impact in bringing down the market," said Norihiro Fujito, general manager of Mitsubishi UFJ Securities' investment research and information division.

"It's not as if there was a huge sell-off in the market."

Yutaka Miura, deputy manager of the equity information department at Shinko Securities, said investors cannot be bullish enough to keep buying as uncertainty remains about the U.S. market and currency moves after the New Year holiday.

The Nikkei average finished the morning session down 0.5 percent or 83.25 points at 15,570.29. It had finished Wednesday up 0.7 percent at 15,653.54, its highest close since Dec. 12.