* Yen higher as investors seek safety in Japanese currency
* Japan stocks fall, disappointment over U.S. financial plan
By Kaori Kaneko
TOKYO, Feb 12 (Reuters) - The yen rose against major currencies in safe-haven trades on Thursday, as investors avoided risk as Japanese stock prices fell on disappointment over financial rescue plans in the United States.
The yen was well-bid as a lower Nikkei stock average prompted Japanese investors returning from a public holiday on Wednesday to seek safety in the currency.
U.S. congressional negotiators on Wednesday reached a deal on $789 billion in emergency spending and tax cuts, handing a big victory to President Barack Obama in his effort to pull the economy back out for a deepening recession.
But financial markets were disappointed by a U.S. bank bailout unveiled on Tuesday that was seen lacking details and clarity, especially over how a public-private partnership would buy up bad assets.
"Without details on the U.S. bank bailout plan, currency market players found it difficult to judge how effective it would be. So they are watching how stocks markets are accessing financial plans," said Kwang-ja Kim, deputy general manager at Shinsei Bank.
The dollar fell 0.2 percent from late U.S. trading on Wednesday to 90.20 yen.
The euro faced downward pressure after European Central Bank policymakers suggested the central bank could resume cutting interest rates next month to help boost the faltering economy.
The euro dipped 0.1 percent to $1.2896 and was down 0.3 percent at 116.30 yen.
Sterling fell 0.2 percent to $1.4380 after Bank of England Governor Mervyn King said the central bank will probably have to ease monetary policy further and could start quantitative easing. (Editing by Brent Kininmont)