* Wall Street's overnight losses lead to subdued mood
* Earnings provide some bright spots
TOKYO, Aug 3 (Reuters) - The Nikkei share average dipped to three-week lows on Wednesday after a downbeat session on Wall Street and on lingering disappointment with Japan's latest fiscal and monetary stimulus measures.
The Nikkei was down 0.9 percent at 16,249.97 points by late morning, touching its lowest intraday level since July 12.
The broader Topix shed 1.4 percent to 1,282.10. The banking sub-index skidded 3.2 percent. The JPX-Nikkei Index 400 was down 1.3 percent at 11,532.58.
Prime Minister Shinzo Abe's cabinet on Tuesday approved 13.5 trillion yen ($133.39 billion) in fiscal measures, but markets were disappointed it did not include more direct government spending which could give an immediate boost to economic growth.
The International Monetary Fund urged Tokyo to do more, and coordinate fiscal stimulus with further central bank measures that could include rate cuts and more asset purchases.
Last Friday, the Bank of Japan disappointed investors hoping for radical stimulus. While it increased purchases of exchange-traded funds to 6 trillion yen, some strategists and investors concluded that the central bank is running out of options.
"Disappointment is still evident after the market priced in high hopes for government stimulus and monetary easing," said Norihiro Fujito, a senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.
"Investors are still adjusting the bullish bets they made after the election," he said, referring to Abe's coalition victory in upper house elections last month.
News that North Korea launched a missile that landed in or near Japanese waters had no direct market impact, but could potentially add to the appeal of the safe-haven yen.
The dollar was up 0.4 percent on the day at 101.25 yen , but it remained not far from a 3-week trough of 100.680 hit overnight. The yen's recent strength has weighed on exporter shares.
But Fujito noted that investors continue to buy shares backed by strong earnings, which helped limit overall losses.
"Earnings in Japan haven't been that bad, against very conservative guidance, which in retrospect was appropriate," said Stefan Worrall, director of Japan equity sales at Credit Suisse in Tokyo. "I'm surprised there's been a failure to recognise more of the positives."
Activity in Japan's services sector expanded slightly last month as companies worked off business backlogs and as new orders showed signs of steadying after a sharp decline in June, a private survey showed earlier on Wednesday.
Shares in Honda Motor Co gained 3.7 percent after jumping more than 5 percent earlier after Japan's No.3 automaker posted a stronger-than-expected rise in first-quarter profits, offsetting the impact of a firmer yen with higher vehicle sales.
Honda's shares outperformed both the broader Tokyo market and other automakers' shares.
Sega Sammy Holdings shares surged 10 percent, after the game maker group on Tuesday posted operating profit of 3.06 billion yen in the April-June period, compared with a loss of 9.46 billion yen a year earlier.
Nidec shares rose 2.9 percent after the Japanese motor manufacturer bought the motors and electric power division of Emerson Electric Co for $1.2 bln
$1 = 101.2100 yen By Tokyo markets team; Editing by Kim Coghill