* Yen's resilience vs dollar drags exporters lower
* Investors looking to book profits after rally -fund manager
* Japan-China spat weighs on China-related shares -trader
* Nikkei has support near 9,400 on daily Ichimoku chart
By Masayuki Kitano
TOKYO, Sept 24 (Reuters) - Tokyo stocks fell 1.3 percent on Friday, hurt as the yen's resilience versus the dollar ate further into gains made since Japan's currency intervention last week and by rising diplomatic tensions between Japan and China.
The two countries are feuding over disputed islets in the East China Sea, while China has detained four Japan nationals on suspicion of entering a Chinese military zone. Rare earth exports to Japan from China have been blocked, some trading firms said although both governments have denied a ban.
Asahi Glass and other glass makers which use a rare earth in an abrasive lost ground.
"It is becoming a situation where you have no choice but to pay heed to China-related risks," said Tsutomu Yamada, market analyst at kabu.com Securities.
"It is hard to tell how much this will escalate," he said. One worry is whether the tensions would lead to boycotts of Japanese products in China, although it is hard to say whether that will occur at this point, he said.
The benchmark Nikkei fell 119.61 points to 9,446.71, declining for a third straight day.
It hit a seven-week high just above 9,700 on Tuesday as the yen retreated against the dollar in the wake of yen-selling intervention by Japanese authorities last week. And it is still up about 7 percent for the month, on track for its biggest monthly percentage gain in six months.
The broader Topix index declined 0.8 percent to 839.76.
The yen has clawed back up from lows near 85.95 yen to the dollar struck after last week's intervention and was trading at 84.54 yen to the dollar on Friday.
The Nikkei has support near 9,400, which is right around the bottom of the cloud on daily Ichimoku charts.
While the potential for further yen-selling intervention is a supportive factor for Tokyo shares, investors are reluctant to chase shares higher, said Kiyoshi Noda, chief fund manager for MU Investments.
"I think many market players are looking for chances to book profits if there is any rebound," Noda said.
"There are persistent concerns about the U.S. economy, and unless that situation improves, it is hard to think that there will be a big shift in the overall trend," he added.
Sony Corp and other exporters slipped, with Sony losing 0.5 percent to 2,575 yen, Honda Motor Co shedding 1 percent to 2,925 yen and chip tester maker Advantest falling 2.8 percent to 1,686 yen.
Among glass makers, Asahi Glass fell 3.5 percent at 868 yen, and Nippon Sheet Glass fell 2.1 percent to 183 yen. Hoya, which makes glass memory disks for hard disk drives, dropped 1.6 percent to 2,068 yen.
Some glass makers use abrasive that contains a rare earth element called cerium, whose supply was already tight after the Chinese government cut rare earth exports for 2010 by 40 percent. China dominates the global supply of rare earths.
Hitachi Construction Machinery, a company known for being highly exposed to the Chinese market, fell 1.7 percent to 1,784 yen.
"There has been a negative reaction and there have been signs of selling pressure on China-related shares," said Hiroaki Kuramochi, chief equity marketing officer at Tokai Tokyo Securities. (Editing by Edwina Gibbs)