TOKYO (Reuters) - Japan's Nikkei average pared gains to 0.1 percent on Friday as investors moved to take profits ahead of key U.S. data amid gloom about the global economy, with banks such as Mitsubishi UFJ Financial Group lower. Chugai Pharmaceutical Co 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. While investors were keeping a key eye on movements of the dollar due to the impact of a stronger yen on exporters, many were spooked into closing positions ahead of a weekend that includes the announcement of U.S. November non-farm payrolls data later on Friday. Non-farm payrolls are expected to fall by 340,000, which would be the worst monthly jobs loss since 1982. "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 chief executives of General Motors Corp 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. The benchmark Nikkei gained 8.71 points to 7,932.95, while the broader Topix was down 0.2 percent at 787.45. The dollar's weakness against the yen weighed on the market after the greenback fell to the lower half of the 92 yen level. By midafternoon it was fetching around 92.40 yen. The general uncertainty was prompting investors to turn 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 extended gains made earlier this week on a brokerage upgrade and robust November sales by its Uniqlo chain of casual clothing shops, rising 1.3 percent to 11,860 yen. Fellow retailer Seven & I Holdings rose 2.3 percent to 2,865 yen. KDDI Corp rose 2.1 percent to 634,000 yen. But bank shares slid on fears about the potential fallout if big U.S. automakers file for bankruptcy. Japan's top lender Mitsubishi UFJ Financial Group lost 5 percent to 437 yen and No.2 Mizuho Financial Group fell 6.6 percent to 211,100 yen. (Reporting by Elaine Lies; Editing by Michael Watson)

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