* Exporters weak as investors take profits

* SMFG outperforms on outlook hike

* Sony gains after Loeb express bullish views on Japan

By Ayai Tomisawa

TOKYO, Nov 13 (Reuters) - Japanese stocks stepped back from

a three-week high on Wednesday morning as concerns about an

imminent turn in U.S. monetary policy dented risk appetite,

while Sumitomo Mitsui Financial Group outperformed

after raising its earnings forecast.

The Nikkei dropped 0.5 percent to 14,520.11 in

mid-morning trade after moving in and out of positive territory

earlier. The index jumped 2.2 percent on the previous day,

posting the biggest rise in two months.

The Topix shed 0.2 percent to 1,203.25.

"I think the majority of investors still expect that the Fed

will start tapering its stimulus in March. But there are views

that it may start earlier than that," said Takuya Takahashi, a

market analyst at Daiwa Securities.

The speculation over when the Federal Reserve may start

winding down its $85 billion-a-month bond-buying programme

remains a key driver of the market, and Friday's data showing an

unexpected surge in U.S. jobs growth in October prompted markets

to speculate of a possible December start to stimulus-tapering.

Atlanta Fed President Dennis Lockhart told reporters on

Tuesday that a reduction of the central bank's quantitative

easing program remains a possibility at the Federal Open Market

Committee's next policy meeting on Dec. 17-18, although he did

say policy should remain very easy.

"Until there are more cues, investors may refrain from

taking large positions," said Jun Yunoki, a strategist at Nomura

Securities.

SMFG outperformed, rising 1.5 percent and was the most

traded stock by turnover after raising its net profit outlook

for the year through March by 5.5 percent to 750 billion yen.

The figure was better than the 688.3 billion yen estimated by 18

analysts polled by Thomson Reuters Starmine.

Most exporters lost ground despite a weaker yen as investors

locked in profits from the previous session's rises. Toyota

Motor Corp dropped 0.3 percent, Honda Motor Co

fell 0.9 percent and Advantest Corp shed 0.6 percent.

The dollar held at 99.63 yen, near a two-month high

of 99.80 yen hit on Tuesday, having risen 0.6 percent so far

this week.

Bucking the trend, Sony Corp soared as much as 4.4

percent to a two-week high of 1,775 yen after activist investor

Daniel Loeb, founder of hedge fund Third Point LLC, told a CNBC

interview that he was bullish on the Japanese economy. He added

that the hedge fund's investment in Sony had also been a bet on

growth policies being pursued by the Japanese government.