Nikkei turns lower as yen's rise hits exporters
* Yen's rise triggers profit-taking, futures selling
* Exporters lead declines
TOKYO, Oct 23 (Reuters) - Japan's Nikkei share average turned lower on Wednesday afternoon, as exporters were hit after the dollar weakened against the yen on heightened expectations the Federal Reserve will keep its stimulus in place until early next year. The Nikkei dropped 1.2 percent to 14,530.24 in early afternoon trade, retreating from a 3-1/2 week high of 14,799.28 hit in the morning. Traders said that futures selling was triggered by weakness in the dollar, which slipped 0.5 percent to 97.47 yen. The dollar's weakness was triggered by a soft U.S. jobs report on Tuesday, which cemented the view the Fed will delay winding back its bond-buying stimulus until next year. "Futures moved in reaction" to the rise in the yen, said a trader at a foreign brokerage, adding that selling accelerated when the index breached below a stop-loss level at 14,580. Exporters dropped, with Honda Motor Co falling 2.4 percent, Sony Corp off 1.7 percent and Panasonic Corp shedding 1.7 percent. A stronger yen erodes Japanese exporters' competitiveness overseas. Against the yen, the euro also slipped 0.4 percent to 134.72 yen. "It's the yen rising against both the dollar and the euro," said Shigemitsu Tsuruta, a senior strategist at SMBC Friend Securities. "There were signs that the Japanese market was overbought, so investors used the yen's rise as a reason to take profits." The Topix shed 0.8 percent to 1,204.42.