* Stocks fall after yen hits 5-month highs versus dollar
* Retreat limited as Alcoa reports smaller-than-expected loss
* Mitsubishi Motors gains on plug-in hybrid report
By Shinichi Saoshiro
TOKYO, July 9 (Reuters) - Japan's Nikkei average fell 0.8 percent on Thursday, with exporters such as Canon Inc retreating as the yen surged to 5-month highs against the dollar the previous day on growing concerns about the health of the global economy.
The Nikkei's retreat was cushioned, however, after U.S. aluminium giant Alcoa Inc reported a smaller-than-expected loss after the market close on Wednesday, giving a positive tone to the start of the closely-watched U.S. earnings season.
"It is mostly about the yen today. The stock market is on the backfoot as the currency not only sliced below the 94 yen threshold but went on to advance below 92 yen. This is not good news for exporters," said Yumi Nishimura, a deputy general manager at Daiwa Securities SMBC.
The yen jumped to around 91.8 yen against the dollar on Wednesday, its highest since February, as investor risk aversion rose on economic worries. It pulled back to around 93 yen on Thursday.
The benchmark Nikkei fell 76.48 points to 9,344.27 after hitting 9,307.81, its lowest level since late May.
The broader Topix declined 1.1 percent to 878.94.
Among exporters, camera and office equipment maker Canon shed 2.5 percent to 2,910 yen and Toyota Motor Corp lost 1.7 percent to 3,410 yen. Honda Motor Co dropped 2.7 percent to 2,325 yen.
But Mitsubishi Motors Corp gained 1.9 percent to 164 yen after a newspaper said it and French carmaker Peugeot Citroen will work together to develop and produce parts for plug-in hybrid vehicles.
Shares of Clarion Co, a maker of car audio equipment, dropped 5.6 percent to 84 yen after the Nikkei business daily said the company is expected to post an operating loss of about 2 billion yen for the April-June quarter due to sluggish domestic sales of automotive electronics. (Editing by Edwina Gibbs)