Nikkei pares losses as U.S. presidential debate ends, weaker yen underpins
* Stock investors carefully monitor USD/JPY - traders
* Financial stocks underperform
* Inpex surges after crude priced jumped overnight
By Ayai Tomisawa
TOKYO, Sept 27 (Reuters) - Japanese stocks were down on Tuesday morning, but were off 7-1/2-week lows hit in early deals amid some volatility as Hillary Clinton and Donald Trump wound up their first U.S. presidential debate.
The dollar also bounced back from earlier losses to post gains against the yen in Asian trade, suggesting markets were judging Clinton as the winner of the debate.
At the midday break, the Nikkei was down 0.3 percent at 16,490.41, recovering from an early morning low of 16,285.41, the weakest level since Aug. 5.
The dollar was up 0.4 percent at 100.745 yen after slipping earlier to 100.085, its lowest since late August.
"Stock investors are cautiously monitoring the currency market to trade in stocks," said Chihiro Ohta, general manager at investment research and investor services at SMBC Nikko Securities. Continuación...