Nikkei slips, investors eye US jobs data and Big 3

* Nikkei down 0.1 pct, loses 6.9 percent for the week * Domestic demand shares up, but Chugai falls on review woes * Banks down on fears of impact of any U.S. carmaker bankruptcy * Investors reluctant to buy ahead of U.S. jobs data (Updates with details)

By Elaine Lies

TOKYO, Dec 5 (Reuters) - Japan's Nikkei average edged down 0.1 percent on Friday as Mizuho Financial Group (8411.T) and other banks fell on fears about the potential fallout if big U.S. automakers file for bankruptcy, while investors were cautious before key U.S. jobs data.

While investors were keeping a close eye on movements of the dollar due to the impact of a stronger yen on exporters, many were spooked into closing positions ahead of the weekend and the announcement of U.S. November non-farm payrolls data.

Honda Motor Co (7267.T) fell 1.9 percent after the company pulled out of Formula One racing to cut costs, underscoring the bleak outlook for automakers [ID:nT343829]. Toyota Motor Corp (7203.T) also fell.

"People are closing positions ahead of the weekend, given the upcoming jobs data and the uncertainty about the fate of the Big Three car makers," said Fujio Ando, senior managing director at Chibagin Asset Management.

"There's any number of reasons not to buy."

The benchmark Nikkei .N225 fell 7 percent on the week and has lost some 48 percent on the year. It shed 6.73 points to 7,917.51. But the daily percentage change -- down 0.08 percent -- was the smallest since July 30, when it rose 0.07 percent.

The broader Topix fell 0.4 percent to 786.02.

Chugai Pharmaceutical Co (4519.T) tumbled nearly 10 percent, becoming the biggest drag on the Nikkei 225 by volume weight, after U.S. regulators asked for more data in their review of key rheumatoid arthritis drug Actemra, which is being developed by Chugai's partner Roche Holding AG (ROG.VX). [ID:nL4463422]

The chief executives of General Motors Corp (GM.N) and Chrysler LLC said they would consider restarting talks about a merger during a nearly six-hour congressional grilling on the industry's pleas for $34 billion in government aid.

No resolution of the auto aid issue is expected until next week at the earliest, when the full Congress reconvenes. [ID:nN04392913] U.S. non-farm payrolls, due to be released later in the day, are expected to have fallen by 340,000, which would be the worst monthly jobs loss since 1982. UNCERTAINTY WEIGHS Though investor attention is currently turned to the United States, Japan is seeing its own woes in terms of job cuts across a wide swathe of firms and temporary plant closings.

Komatsu Ltd (6301.T), the world's second-biggest earth-moving equipment maker, lost 3.8 percent to 907 yen after the company said it would suspend operations of power shovel plants at home and abroad for two to four days per month from December.

A spokeswoman for Toshiba Corp (6502.T) said the company was looking at its operating schedule for the year-end and considering suspending some chip-making lines, but it denied a media report that the company would halt chip production at two plants for nine days due to weak demand. [ID:nT345231].

Toshiba rose 0.7 percent to 301 yen, giving up most of its earlier gains. Investors turned to shares of companies dependent on domestic demand such as communications and retail, seen as strong in the face of global economic uncertainty.

Fast Retailing (9983.T) extended gains made earlier this week on a brokerage upgrade and robust November sales at its Uniqlo chain of casual-clothing shops, rising 1.1 percent to 11,840 yen.