* Nikkei hit by selling on futures/options settlement
* Daiwa Securities, SMFG down after dissolving joint venture
* Eyes on Chinese indicators later Friday
TOKYO, Sept 11 (Reuters) - Japan's Nikkei average slipped 0.6 percent on Friday, hit by concerns over a stronger yen, with automakers such as Toyota Motor Corp losing ground though other exporters managed to cling to gains. Daiwa Securities Group fell after it said it would pay about $2.2 billion to buy out Sumitomo Mitsui Financial Group from their investment banking joint venture, leaving Daiwa vulnerable amid intensifying competition for deals in Japan.
Japan's gross domestic product grew a revised 0.6 percent in the second quarter, below market expectations for a 0.9 percent expansion, which was the same as the government's preliminary estimate issued last month. But market players said it was not having a significant impact.
"I wouldn't say the GDP data is completely unconnected to the Nikkei's dip, but mainly this is due to the yen's advance, which is quite a negative factor if you think about company earnings," said Masayoshi Okamoto, head of dealing at Jujiya Securities.
Since late August the yen has been above levels expected by major manufacturers for the current financial year , giving rise to worries about corporate earnings. Investors worry about a stronger yen since it eats into exporters' earnings when repatriated.
The dollar slipped 0.2 percent against the yen to 91.53 yen, heading back towards a seven-month low of 91.45 yen
The benchmark Nikkei shed 60.19 points to 10,453.48, while the broader Topix lost 0.5 percent to 954.12. But others were more optimistic, noting that Wall Street has risen for five straight trading days.
"With a lot of global stock markets putting in good performances these days, sentiment isn't all that bad either," said Hiroichi Nishi, general manager in the equity division of Nikko Cordial Securities.
Jujiya's Okamoto said the Nikkei was pushed lower by a wave of selling connected with Friday's settlement of Nikkei futures and options, the so-called "special quotation" or "SQ", saying a late jump in the benchmark on Thursday had lately been a move to push up prices in preparation for this.
Nikkei futures and options contracts expiring in September likely settled at 10,541.92, Tokyo market participants said on Friday, citing estimates by local brokerages.
Automakers were weak, with Toyota losing 1.3 percent to 3,860 yen and Honda Motor Co down 0.9 percent to 2,900 yen.
Honda will limit auto production in Japan to 1 million cars and shift more production overseas to rein in costs, Japan's Asahi daily said on Friday, citing an interview with Honda President Takanobu Ito.
But tech-linked exporters edged higher, with Canon Inc up 1.4 percent and Sony Corp up 1.2 percent to 2,500 yen.
Shares of talent agency Yoshimoto Kogyo Co Ltd surged 3.9 percent to 1,342 yen after two sources familiar with the matter said the company plans to go private in a 52.7 billion yen ($571 million) buyout led by a consortium of about 20 firms.
China's industrial production and retail sales figures for August are among data to be released at 0200 GMT that will give an indication whether the pace of economic recovery there is quickening. (Reporting by Elaine Lies; Editing by Michael Watson)