Nikkei slides on profit-taking, yen hits exporters

* Nikkei down 2.0 pct after jumping 7.6 pct previous week

* Exporters fall on rising yen, weak U.S. retail reports

* Investors eye development in U.S. auto sector bailout (Adds stocks, details)

By Rika Otsuka

TOKYO, Dec 1 (Reuters) - Japan's Nikkei average fell 2.0 percent by midday on Monday as global recession fears prompted investors to book profits after last week's rally, with exporters such as Toyota Motor Corp (7203.T) slipping on a firmer yen.

Honda Motor Co (7267.T) dropped 4.9 percent after a top executive at the car maker said it would have a tough time meeting its lowered annual profit forecasts due to an increasingly severe sales environment. [ID:nT186150]

"Investors sold this morning as the psychological 9,000 mark in the Nikkei came in the sight on Friday," said Yuuki Sakurai, general manager of financial and investment planning at Fukoku Mutual Life Insurance.

"Investors cannot buy shares aggressively unless governments in Japan, the United States and Europe all introduce stimulus packages big enough to make them believe the global economy will improve," Sakurai said.

The benchmark Nikkei .N225 slid 166.44 points to 8,345.83 by the end of morning trade, after having jumped 7.6 percent the previous week.  Continued...