FOREX-Yen rises as stock drop saps risk tolerance

MARKETS-FOREX (UPDATE 1):FOREX-Yen rises as stock drop saps risk tolerance

* Yen advances vs dollar, euro as Tokyo shares fall

* Euro underpinned by prospect of Fed rate cut next week

* Focus stays on fate of US automaker bailout

By Kaori Kaneko

TOKYO, Dec 11 (Reuters) - The yen advanced against major currencies on Thursday, recovering some of its losses from the previous day as stocks fell, making investors less risk tolerant.

Asian shares fell despite gains on Wall Street, making investors return to the relative safety of the low-yielding yen.

But market participants said currencies were unlikely to move much as trade winds down towards the year-end, with moves likely to be led by big institutional players.

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